Written Commentary
LIVESTOCK AM OUTLOOK
Processors are wanting more Select products that can be ground and processed into items with larger mark ups. Normally, beef begins to increase into March but with consumers wanting to keep grocery bills down while their total grocery cart prices are going up, buying cheaper beef is one way to do it.
However, as last weeks slaughter showed packers want cattle because they must fill contract orders. Daily beef movement is light and the price of the cutout isn’t a reflection of majority of beef bought.
Cash and Lean Hog futures keep adding money day after day. Comparing pork to beef and even chicken, consumers are buying pork and retailers want them to buy it. The mark up on pork from wholesale to retail on loins is often 4 to 5 times of what is paid out of the packer and it is still a cheaper product.
Until hog slaughter increases and Tuesday’s kill was just 479,000, pork could stay strong.
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