Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Cattle and Feeder Cattle futures have rallied into the report. At the same time packers are slowing slaughter. Low placements are bullish but purposely slowing slaughter means packers won’t need to aggressively buy cattle. Monday, traders will be more concerned with the drop in the slaughter than the report. Feeder Cattle have big premiums already. The report will do little to futures Monday with traders more concerned with the slowdown giving packers a way to buy without adding more losses to negative their margins. The cattle industry has a big problem with the drop in cattle.
LEAN HOGS
June and summer month high priced compared to April and especially current prices. Friday volume was moderate as sellers came into lean hogs and moved prices off the Thursday highs and took quick profits for the week. Pork prices remain cheap and on the global market pork demand is strong. Hogs are benefiting from less beef, high priced beef and good exports.
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