Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
Volume was moderately active Friday with live cattle falling hard. With October going off the board, long liquidation started the ball rolling lower with long Octobers blowing out. However, a big part of the trade Friday were spread traders selling live cattle and buying lean hogs. The volumes on cattle and hogs for December and February were very similar.
Similar to October, November is normally a weak time for beef with grocery shoppers wanting the cheapest meat, ground beef. The improvement on the cutout in November typically comes from rib primals. This year rib sections pricing will depend on how many are in storage ahead of the December holidays.
LEAN HOG COMPLEX
Outright, lean hog futures were lower Friday but there were buyers as spread traders were actively buying lean hogs and selling live cattle. On Friday spread traders were also taking profits on lean hog bear spreads that moved to their widest on Thursday.
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