Written Commentary
MORNING LIVESTOCK
Volume was very light Monday. Trading was within a tight range but it remains technically strong. Traders tried to push Live Cattle lower but were unsuccessful and ended up buying back shorts.
As prices on the CME Lean Hog Index and the CME Pork Index continue to fall, negotiated hogs prices drop and formula and prices based on futures fall. Monday packers were moving a lot of hogs from the formula and futures purchases. These hogs are controlled by the packers and when movement was as large as it was on Monday it indicates packers are not wanting to keep hogs especially noticeable when prices are dropping.
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