Written Commentary
Morning Livestock Outlook
Last week Boxed Beef compared to the previous week was down $4.03 on Choice and Select was down $3.98. Compared to the previous week slaughter was down 7000 head and compared to the same week a year ago slaughter was down 5000 head.
If heat over next week doesn’t move weights lower, then the back up of cattle is still around. Across southwest and Midwest many areas have temperatures in high 90’s with indexes above 100 and the next 3 to 4 days are going to be higher heat indexes.
Friday’s futures trading was low volume. Cash markets were over for the most part Thursday.
For the week, the pork carcass cutout was up $3.00. Loins improved by $4.89 and hams were up $7.67. Butts , ribs and bellies were lower and picnics were higher.
Slaughter down from a week ago by 75,000 head. There are packers slowing down as more employees testing positive with coronavirus. Brazil has COVID 19 slowing plants. It is likely could see pork prices improve with less global meat, and hog prices drop if packers can’t kill available inventory.
Exports were strong with Mexico the biggest buyer which is not a surprise with hams and fresh bellies moving up. Mexico has for years been one of the best buyers of hams and bellies where they are trimmed out. China is buying but far from the large loads it took the first quarter.
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