Written Commentary
Livestock AM Outlook
October Live Cattle quietly closed out Friday at $105.97. Bull spreading was the major part of trading for December into the spring of 2021 on moderate volume.
Japan may be an important exporter to watch. Past years showed that Japan was the best buyer of overfed big cuts. Need to see if they will increase importing big and even fat covered cuts. However, the US isn’t the only country with big Choice and Prime cuts. Great Britain and Australia along with Brazil and Argentina are big competition.
The pork cutout was at higher levels in October because of the strength for most of month due to the bellies and hams. However, with ham and belly prices falling, the cutout could be in a lot of trouble because loins are a dragging anchor on the cutout. For the week, the CME Pork Index was down $9.45, and the CME Lean Hog Index was down $3.11
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