Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Cattle that couldn’t make Tuesday’s kill were able to be delivered Wednesday but with light beef sales, packers aren’t going to push slaughter. Demand is over for holiday Choice primal rib buying. Moving forward, the beef will need to see support from the middle and lower priced sections. In 2024 traders will be watching for any consistent moves down on financial markets or upturns on energy markets. Cash cattle prices last week were up a solid $2.00 and for some cattle $3.00 higher, but buying was light especially in the Southwest. This week is a short kill week and next week will be another shortened week. Last week kill was just 621,000 head.
LEAN HOGS
Light volume trade on Wednesday. Spec traders were bear spreading. Packers were able to bring in hogs that missed Tuesday’s kill due to snow but with light pork sales, they aren’t pushing kill. Look for light trading the remainder of the week. Pork movement was also light. Hams on the daily buy were up on early sales $5.70 and end the day up 3.52 but it didn’t help the 5 day average currently at 74.98 Hams are cheap and although there wasn’t a surge on demand during the holidays, processors and retailers may need to refill inventories.
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