Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
If the Cold Storage report was current and not close to 4 weeks old, it would be positive for beef and negative for hogs.
LEAN HOGS
Federal Hog slaughter is up close to 2% over last year. With hog prices moving down, it takes away the incentive for producers to increase, but the large mega producers who sell on contracts formulas or some sort of contract, need to keep pigs going into the pens and hogs going out as not to increase pen space costs. It is not 1970 when hogs were outside. Producers now keep buildings full because they sell on various programs and guarantee hogs. Also there are hogs in pens now from producers that were hit with PRRS during first half of 2022.
LIVE CATTLE
Volume was light Tuesday for Cattle futures. Hedgers don’t want to sell Live Cattle at a discount especially with spreads bull spread. With most speculative traders in June and some rolling into August and beyond, speculators continue to pressure Live Cattle.
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