Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Watching livestock trading this week is like listening to a baby’s lullaby. Live Cattle, Feeder Cattle and Lean Hog volume has slowed every day this week. It was expected with the cattle, hog and cold storage reports out Friday afternoon and most large traders sidelined and will be out until the new year. Boxed Beef prices are moving lower as the beef demand for the December holidays is coming to an end. The Midwest has ample supplies of cattle with bigger and heavier cattle. Several feedlots are going to wait to move cattle until the new year.
LEAN HOGS
As hog numbers increased in 2023, the pork market couldn’t keep up with the increasing numbers. With beef prices dropping in 2024, pork is going to lose some demand with cheaper beef especially low priced beef cuts and cheaper ground beef. The start of 2024 will also see more beef as cattle are moved at higher weights putting more trimmings and ground beef on the market. Wednesday, December 20, 2023, the CME Pork Index gained on the CME Lean Hogs and was plus $17.39. As long as pork prices gain on hog prices, it is positive for packers.
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