Tight Trading Range in Live Cattle
MORNING LIVESTOCK OUTLOOK
Live cattle trading Thursday had a tight trading range and volume was light. October Live Cattle from last Friday’s close to Thursdays close are up $1.42 and with boxed beef trading in a tight range, it may be all futures do for the week. The talk that cattle numbers have peaked, now has to be proven.
Hog weights are dropping. It is likely packers and meat brokers are having loads price discounted on pork they previously contracted. One advantage of using contracts is to buy a product that meets the buyers specifications. The buyer knows they can offer the consumer a consistent product. When weights differ from what was contracted, the buyer will discount the original order.
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