Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Tuesday’s trade volume in LC was active as it was Monday. Monday, traders were bull spreading and Tuesday traders did the opposite. At current high prices in 2023 demand for trimmings and ground beef have increased. Going into the holidays will demand be as strong as a year ago and after the holidays at what prices are consumers going to say beef prices are too high as many consumers are already saying as they buy cheaper cuts and lower graded beef.
LEAN HOGS
As of Friday, October 27th year to date hog slaughter was up 1,444,000 head. With the increase numbers of hogs it is expected to have lower pork prices. The good news exports are up from a year ago that have helped prices. But demand from US consumers has been reported to about 1 pound more in consumption. When reports from China show over supply and Brazil, the main competitor of the US for pork exports to the world expands, the US pork industry has to find ways to increase ham and loin exports and more importantly to get US consumers to increase consumption.
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