Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Volume has been light as live cattle futures move higher with open interest increasing. Kill is starting out lower compared to a week ago. With packers buying fewer showlist cattle last week, a lower slaughter is anticipated. Packers will tighten slaughter in order to keep beef prices up. Slaughter this week will be near 600,000.
PORK COMPLEX
There has been a buildup in open interest for Lean Hogs on light volume. It is an alert to be cautious. As reported last week, over past 10 years, 80% from mid-October the prices are lower into December. 2024 may be the opposite, but controlling risk is a wise choice. The difference between the CME Lean Hog Index and the CME Pork Index is widening. This is packer positive. If packers need to increase kill, they will pay up.
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