Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
Cattle prices turning down were bound to happen. The spread market has been pointing direction with spreaders bear spreading.
According to the USDA, global beef production is expected to decline in 2026 by more than 3%.
Beef production in 2027 is expected to decline in the United States, Brazil, Australia and the European Union. It is expected to increase in Argentina, India and Uruguay.
LEAN HOG COMPLEX
Spread trading was extremely active on lean hogs. Trade volume was very active with the price range on individual contracts only moved from high to low about 2.30 points. Traders were bull spreading. Going into November when both hogs and cattle aren’t trading in a spot month, markets could become quite volatile.
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