Written Commentary
MORNING LIVESTOCK OUTLOOK
Weights continue to drop and grading percent is one of the lowest in years at 80.9% which shows feedlots want to move cattle as soon as the packer will take them and also likely feeding less grain. It is the reason packers have been paying high price premiums for higher grading and heavier cattle. A year ago the average steer and heifer carcasses were lighter at 869.1 pounds but grading percent was 83.3%.
China will buy another 40,000 mt of frozen pork for state reserves on Friday to support domestic prices for hog producers saddled with poor margins. This will be the sixth round of pork buys for state reserves. China buying their own pork is the reason they are limiting exports from Brazil, the EU and the US.
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