Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
Monday was another low volume trade day. Live cattle were at their lowest early when crude oil was the highest. Spread traders were bear spreading cattle as well as buying hogs and selling cattle.
With a lighter slaughter beef prices are moving higher. Beef prices have been moving up. When the average load for 6 days was just 96, prices are going to rise.
Feeder cattle traders didn’t seem to care grain prices were lower but instead followed live cattle lower. The most active trading were spread traders.
LEAN HOG COMPLEX
Last week hog weights were a pound more than the previous week and slaughter was up 68,000 compared to the previous week. Going forward, watch the weight and slaughter over the next few weeks. It is beginning to look like hogs maybe backing up. Packer margins are negative. Cold storage stocks have been increasing. Packers and wholesalers don’t want to have more pork than they can move and with storage going up, it looks like that is what is happening.
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