MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
The CME Boxed Beef Index was down $2.67 from a week ago. Boxed beef is being supported by Primal Rib and Loins for Choice and Select beef mainly due to low availability of the products. Price support could be daily buyers that buy hand to mouth and/or contract beef buyers needing extra into the holidays. If it is contract beef buyers, they have beef purchased at much lower levels and buying a few loads now wouldn’t be a bump on prices on previous purchases. The concern is what will buyers do when demand lessens after the holiday buying is over.
FEEDER CATTLE
Cash buyers are going to use the drop in futures buy cash feeder cattle lower. The drop in live cattle prices will make feedlots even more cautious buying feeders and replacing feeder cattle.
LEAN HOGS
The CME Lean Hog Index gained 3 cents and the CME Pork Index was up 99 cents. Packers are working in the black and should keep kill lines full. Kill and weights need to be monitored going forward. Don’t want to see a reduction in slaughter with increasing weights. Exports are the bright spot and into 2024 need to remain strong.
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