Written Commentary
MORNING LIVESTOCK OUTLOOK
The CME Pork Index is narrowing to the CME Lean Hog Index and as it narrows, it eats into packer profits. Packers were able to keep the cutout from falling apart by killing fewer hogs. For the week, compared to a week ago, slaughter was down 97,000 head.
Packers paid up to $161.00 in Iowa and $160.00 in Kansas and Texas but the buy on showlist cattle was light especially in Texas, New Mexico, Oklahoma and Kansas. There were several reports claiming packers were short bought, but it is more like they were exact bought. When packers contract beef, it goes hand in hand with contracted cattle needed to fill beef orders.
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