Written Commentary
MORNING LIVESTOCK OUTLOOK
The USDA biannual cattle inventory report Monday said the herd was 2% smaller than a year ago. It’s the third straight yearly drop and the smallest herd since 2016. Analysts surveyed by Bloomberg expected only a 1.1% decline. Biannual report was friendly for feeders, but high corn prices weighing on the price of feeder cattle.
Hogs were higher Monday but trade volume was light. But with the CME Hog index and Pork index higher, even with wide spread between cash and futures and very wide spread between April and cash, traders just don’t want to break the market.
Winter storms will limit hog sales by the end of the week but should see strong demand for pork before storms.
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