Written Commentary
MORNING LIVESTOCK OUTLOOK
Trade volume increased on Live Cattle Wednesday. Spread traders were actively bull spreading, buying the front month a selling the outward months. Bear spreads have been too wide. It is too soon to tell if traders are simply correcting the wide bear spreads before the COF report or if they will continue to bull spread going into 2023.
Wide bear spreads corrected Wednesday. It is too early to say if traders were liquidating the wide spreads ahead of the Hogs and Pigs report and end of the year profit taking or are going to reverse spreads in 2023. Trade volume was moderately active.
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