Written Commentary
Livestock AM Outlook
Select beef was knocked down Monday. Combine too many Select cattle available at this time with too many heavy Choice and it isn’t bullish. Unless packers must fill previously contracted orders with specific Choice beef weights, cattle could have a hard time putting in much of a rally until Selects and heavy Choice are cleaned up.
Pork cutout started out Monday up 2.99 on extremely light volume but by the afternoon cutout was down 1.39. Hams were up 6.84, but loins dropped 4.94. Bellies were down 13.17. Loins are dragging down the cutout. Over the past year, the cutout has benefited when China buys large tonnage but with increasing hogs in China and inventories expanding across the globe, it appears China is not going to be the big buyer it has been and it is very hard to see they will buy any amounts similar to record purchases the first quarter of 2020.
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