Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
With all the heavy cattle, if packers wanted to push up kill, they could do it, but they are keeping slaughter at levels so they aren’t building up stocks except for rib stocks when 70% of prime rib roasts are sold for the December holidays. They trim up the rib primals, put the trimmings into grindings, and store the roasts.
A concern for buying feeder cattle is how will consumers buy beef in 2027 if inflation continues. Tied with inflation feedlot buyers will be concerned with an outlook for higher interest rates.
LEAN HOG COMPLEX
Lean hog futures were lower for the week with December down 90 cents. Spread traders were bear spreading lean hogs and buying cattle and selling hogs.
Hog prices are being pulled lower as pork prices continue to fall. Compared to a week ago the national daily pork carcass price was down $1.68.
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