Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
Lean Hogs were down Tuesday. Feb 2024 Lean Hogs dropped to contract lows and to levels with the CME Lean Hog Index. Other contracts followed February. But with over a month and a half before Feb 2024 Lean Hogs expire, Feb Hogs following cash is too early. Speculators were moving the market with specs getting ahead of larger fund rolling. Packer profits are positive and with daily hogs going down and pork prices up, packers are going to keep lines moving with filled shackles but at levels where profits remain positive.
LIVE CATTLE
It has been expected that beef would drop after the holidays with lack of demand for primal ribs and loins. Boxed beef was down $5.37 because Choice primal ribs in the last week are down close to $100. Choice rib and loin primals kept the market strong last 2 months as buyers were needing inventory for the December holidays but now that it is over, demand is no longer needed.
Bad weather is expected over the weekend into early next week across the Plains, Packers could push kill ahead of storm.
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