Written Commentary
LIVESTOCK AM OUTLOOK
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.9 million head on April 1, 2021. The inventory was 5 percent above April 1, 2020. This is the second highest April 1 inventory since the series began in 1996.
Boxed beef had big price move higher this week, but it didn’t help the cash or futures. Cattle slaughter of 665,000 was a big kill.
The US is now a large part of foreign demand. For the first quarter of 2021 Brazil has imported 79.25% more beef to US after Secretary Sonny Perdue lifted beef export quotas from Brazil.
With loins and hams under $1.00/pound, the cutout is unbalanced to cheap products. Pork is still cheap. Cheap cuts are high. With movement as light as it is compared to total amount of pork slaughtered and moved according to Thursday’s cold storage report, pork has room to move higher.
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