Cattle Futures Start Higher
Morning Livestock Outlook
On feed at 104% shows even with packers pushing kills up, it’s not up fast enough and weights higher than year ago, there are still plenty of cattle that need to be killed.
Placements at 106% is negative. There will be a lot of cattle to kill into December and into the first quarter of 2021 with 800 to 899 weighted cattle at 517,000 head followed with 700 to 799 pounders with 500,000 head.
Marketings at 106 percent shows packers are moving as many cattle through the kill lines as possible but with big heavy cattle the bulk of the cattle, and with big numbers coming up, kill needs to increase and with the adapting to plant labor because of COVID
Packers pulled out of the market Friday and they may be light on cattle to kill this week. However, severe weather was predicted last week for the start of this week, buying fewer cattle was probably intentional.
The pork carcass cutout for the week was down 5.94 compared to close a week ago. Loins fell 7.26, bellies down 16.33, Butts fell 10.04, Ribs down 5.11 and Picnics down off 1.81. Hams off 4 cents. Hard to tell if hams and bellies have topped with big drop on Friday but these primals need to be monitored because they have been reason cutout has been up.
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