Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOG COMPLEX
Drop in cash prices yesterday. Sellers increasing more pork loads on negotiated prices indicating fewer contracted pork sales which is negative.
Volume on lean hogs was moderate with futures pushing into new lows. Spread traders, December through April 2027 were bear spreading. The last hogs and pigs report should have traders bull spreading. The problem with hogs is pork. Consumers aren’t eating loins or hams. Like beef, consumers are eating pork products like sausages, trimmings and ground pork but not the top primals.
LIVE CATTLE COMPLEX
What is going to encourage cow/calf producers to increase breeding and retaining heifers? Heifers were down 1% on the report but any increase in the cattle inventory is many, many months ahead.
With the low placements will president trump extend the tariff free beef imports into 2027?
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