Written Commentary
MORNING LIVESTOCK OUTLOOK
Cattle prices are going up, but packers are paying for fewer cattle and slaughter is dropping to a point where fewer cattle killed means higher costs to slaughter. Weights are also dropping and packers will need to pay up for cattle to fit orders for heavier cuts. Daily boxed beef sales are also light. Unless packer feedlots and contract feedlots loose orders for contracted beef, demand for feeder cattle will remain strong.
Pork prices have leveled off. With downward revisions to last week’s slaughter there were 109,000 less hogs killed than the previous week. By killing fewer hogs last week packers have kept the daily cutout from falling.
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