Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
February came within 7 cents on Tuesday of filling a gap that was made in October after president trump announced increasing Argentina’s beef quota.
February and April are now bear spread. A year ago cash cattle were above futures. Now, futures are above the cash average steer price. Beef prices are higher but on a very small part of the total kill.
LEAN HOG COMPLEX
The wide bear spread between February and April lean hogs narrowed a bit on Tuesday and spreads from April on out were bull spreading along with cattle gaining on hogs.
Lean hog futures are now higher than the highest prices for the contract months than they were a year ago. For instance in 2025 the June 2025 lean hog contract high was $106.35 on February 18, 2025. On Tuesday June lean hogs made a contract high at 110.97. February 2026 lean hogs are far from the contract high of 92.62 made on September 26, 2025.
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