Written Commentary
MORNING LIVESTOCK OUTLOOK
The strong exports are keeping pork from dropping even faster. Traders need to keep an eye on the Mexican peso. It has been rocketing higher and a pull-back could happen. The pork market needs the export market. Brazil is pushing exports and with a cheap Brazillian Real, and an increase in hogs, they are going to continue to push exports. According to the USDA, Brazil’s swine numbers are expected to be up 2.56% in 2023. China is expected to be up 1.07% in 2022 and 1.96% in 2023.
For the week ending October 27th, beef exports were pathetic. There is no other way to put it. Net sales were just 9,200 MT. Japan was the largest buyer taking just 3,000 MT with South Korea the second largest buyer taking a nominal 1,900 MT. China took zero and cancelled 900 MT of exports. 2022 started out on fire with China a big buyer but it was South Korea and Japan increasing over previous purchases in 2021.
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