Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Live cattle and Feeder cattle turned higher Friday after Secretary of Agriculture Rollins and Governor Greg Abbott of Texas announced a plan to combat the new world screwworm. Thursday prices fell on rumors the secretary would announce that Mexican cattle would re-enter the US. The USDA is going to build Texas a facility to fight screwworm.
Trade volume was light to moderate Friday as the market moved higher crossing out the down side rumor trade of Thursday. August did close higher on the week up $3.75 from a week ago but remains below the average steer price at $242.25 and giving longs an incentive to stay long. There have been zero deliveries in August.
PORK COMPLEX
For the week there was little change for the CME Lean Hog Index and the CME Pork Cutout Index. The difference at $6.70 is negative for packers but with slaughter increasing the adding hogs has not made it worse. They are able to sell more pork and take in more hogs.
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