Written Commentary
Livestock AM Outlook
With boxed beef improving, and packers gaining at least $50 on profit margin, feedlots are asking up to $112. It is more likely $110 will move cattle unless packers pay up on cattle needed to fill previously contracted beef. Average steer weight across the US at 1502 pounds still shows there are still a good many heavy overfed cattle. Deeper discounts likely on heavy cattle and could see premiums paid in cash market for cattle packers need.
On good movement Tuesday, the pork cutout was down 2.71. Hams were off 11.20, Loins were down 1.88, bellies up 6.11. EARLY BUT SETTLED DOWN 98 CENTS. Butts and Picnics only primals higher. Hams settled about 6.50 below 5 day average. Hams need to be watched for direction off cutout unless for some reason loins can move up which isn’t likely unless China comes back in buying carcasses.
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