Written Commentary
MORNING LIVESTOCK OUTLOOK
Slaughter for the week was up 11,000 head at 629,000 but it is a light week. Year to date slaughter is down 153,000 head. Little change in price for Live Cattle futures April through August. Prices higher for fall and winter Live Cattle. Bull spreading on April/June and Bear spreading June/October. Cattle/Hog spread has cattle on hogs.
Compared to a week ago, the pork carcass price has changed little, hanging around $85.00 to $85.50. Futures have dropped with April over cash but with close to 6 weeks before April expiration, speculators have a lot of time to move markets especially spreads that are very wide at this time. Pork movement has been light and with negative margins, packers aren’t going to try to increase slaughter.
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