Tuesday’s live cattle trade was higher except for August as the few long spec traders left in August finally exited positions. Volume was light. Feedlots at current levels are beginning to question how much more upside market has in it. But with Boxed Beef taking day after day steps higher, market looks strong.
The demand for beef has done an about face over the past three weeks. There is strong demand for Choice Rib and Loin sections. It is no longer being blended into trimmings and ground beef.
A drop in US hogs should be friendly to prices but with the fast growing numbers in Argentina and Brazil, the Ukraine and EU pork producing counties along with exponential rebuilding along with expansion in China and Viet Nam, price improvement in the US will need to from mainly internal demand and Mexico remaining a consistently strong buyer.
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