Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
The COF report was right in line with expectations. The report won’t impact markets on Monday. Traders are focusing on falling boxed beef prices versus anticipation of increasing demand for beef going into the 4th quarter. Beef prices are dropping day after day. More beef is being moved on the daily market. Packers will back off buying cattle. Packers would rather see cattle weights increase than buy extra cattle. Beef wholesalers want lower US beef prices and will import more beef versus buying more US beef.
PORK COMPLEX
Lean hog trade volume was exceptionally light over the past week. Slaughter was off 59,000 head from a week ago. The CME Lean Hog Index was down 97 cents while the CME Pork Cutout was off just 17 cents. Next week slaughter should pick up with hogs missing from kill this week in the southeast and they move to the packer next week.
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