Written Commentary
MORNING LIVESTOCK OUTLOOK
After big move higher last Friday, Live Cattle futures moved lower Monday. Traders were a bit disappointed that higher prices paid in the Southwest weren’t the same as the Midwest. For 2022, the premiums with Friday’s rally were too high too fast. Trades fell to the 10 day moving average and bounced off. Trading on Monday was also likely end of the month profit taking.
Unwinding of spreads Monday especially the Long Cattle/Short Hog spreads after the explosive move of last Friday. Hog spreads didn’t unwind and made bear spreads move wider. December Lean hogs down. It is possible with in the near term with concerns about inflation, pork could see a boost in consumer buying.
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