Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Live Cattle trade volume was active Friday, but nothing like the previous 3 days. Trade volume was extremely heavy but the daily settlement price changed by a few pennies.
New tariffs on Brazil up to 50% is positive for beef, moving up Canadian tariffs is positive for fed cattle. Quarantining Mexican feeder cattle is positive for feeder cattle and positive for cattle. New tariffs on Mexico and the EU will raise food prices from meats, fruits and vegetables.
PORK COMPLEX
Lean Hog futures were lower for the week as traders use the hogs and pigs report with the 1% increase in inventory as negative. Also packers now have negative margins and have no incentive to push kill. Exports are down on the year which also adds negativity.
Increasing tariffs on Mexico is going to be taken as negative. Mexican pork imports are extremely important for the US pork industry.
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