Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
With a stronger cash cattle market, there are traders expecting Live Cattle futures to go up, but with fast falling boxed beef prices, there are traders selling futures. At the same time, there is uncertainty with traders not knowing what way to turn because the nearest futures is February 2024 Live Cattle and there is a lot that can happen to move futures higher or lower.
FEEDER CATTLE
Feeder prices will be an indicator of how much beef is contracted. Contract feeders and packers for their own lots are the strength or possible weakness ahead. If beef contracts go down, these feedlots will back off buying.
LEAN HOGS
Regardless of what the pork market is doing by itself, the positive move on Lean Hog futures are traders seeing the difference between hog and pork prices. With the Hog Index $18.29 under the Pork Cutout Index, packers want to kill hogs. When cash hog prices are going down and pork prices are moving up, it is a bonus for the packers. The positive difference is what packers want. Packers also have done a very good job of keep a tight chain schedule.
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