Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
The COF report is bearish. There were more cattle on feed and placements were well above trade expectations. Marketings were low, but close to expected. After Monday, Live Cattle will trade the beef market for December and spec traders will continue bear spreading into 2024. Going forward into the end of the year, trading will depend on the beef market and the demand for rib and loin primals.
LEAN HOGS
The CME Pork Index is narrowing to the CME Lean Hog Index. Packers are losing profit margins when this happens. The daily 5 day carcass average has been consistently loosing. Lean hog futures fell this week and at the same time, traders and hedgers were liquidating bear spreads and selling forward months more than nearby months.
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