Written Commentary
Livestock AM Outlook
Trade volume was very light on Live Cattle futures Wednesday. Spec longs exiting August was the primary activity. October dropped to first support, the 10 day moving average and bounced off.
Demand for Feeders is strong. Feedlots are current in the north and Midwest. Grain is cheap. Contract feedlots need to keep pens filled.
Hog slaughter almost daily is being revised lower. With direct hog prices moving down it is reminiscent of what took place as COVID 19 hit packing plants in the spring. Several Midwestern and Southeast states such as Georgia, North Carolina, Nebraska, Missouri and Iowa have had surges in new cases of the virus. Need to keep a watch on weights if they begin to increase suggesting packers are backing up hogs.
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