Rate Hike Could Move Cattle Lower
MORNING LIVESTOCK OUTLOOK
The Federal Reserve is expected to increase rates by as much as .75%. The increase is likely to have a negative effect to stock market and a severe downturn could move futures down on Live Cattle. Higher rates also will effect feedlots with loans for replacement cattle. It could have producers keeping cattle on feed longer, and adding more pounds. Higher corn prices negative to feeders but contract and packer owned cattle need to keep lots at levels to at least fill contracts for previously sold cattle and beef.
Live Cattle trade volume increasing on Live Cattle ahead of Cattle on Feed Report. In contrast, Lean hog trade volume this week is light.
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