Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Trade volume is light. Changes often come when volume is light.
Cheaper beef is what buyers want from the home shopper to the fast food industry. With the severe cold, fast food restaurants saw decreased traffic. It is very likely that U.S. beef buyers will increase imports. There are going to be cattle discounted due to problems with freezing. Feedlots selling these cattle will see big discounts.
LEAN HOGS
February Lean Hogs closed $4.60 over the CME Lean Hog Index but there is plenty of time before February Lean Hogs go off the board and need to converge with cash. Kill picked up Wednesday and more trucks were able to move pork from plants as roads cleared. If hogs can’t get to town because of weather, trucks leaving with pork can’t leave the packer.
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