Written Commentary
LIVESTOCK AM OUTLOOK
Compared to a year ago Federal slaughter year to date is down 2 percent. However, over next few weeks it will change due to a year ago was when packers were either slowing kill or stopping kill but it is down and weights are dropping. Economy is picking up and summer demand will increase. Unlike it was expected for 2021, cattle numbers are dropping in Brazil and demand is strong for world beef. Australia and Brazil have higher cattle prices than the US and US prices will increase to even out world prices
The CME Pork Index is narrowing to CME Lean Hog Index. However spreads remain wide and are still bull spread. Hams on the 5 day average at $93.27 have rallied but compared to other proteins are cheap. Hams have been losing to loins which is expected as summer approaches but at $86.80 are cheap and expect exports to remain strong. Cutout is out of whack as butts, ribs and bellies are high priced but biggest cuts loins and hams are cheap and with cheap hams and loins, market could move higher. Ribs and butts high as craze for barbeque and exports keep buyers wanting them.
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