Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Trading in Live Cattle Tuesday was about trades left in August liquidating ahead of last trading day on August 31st and there was a little spreading taking place. Feedlots aren’t going to be active sellers unless packers decide to add money. The showlist is going to be light. Packers are not going to be aggressive buyers ahead of the Labor Day break.
LEAN HOGS
This week and next week will be short slaughter weeks. Packers may be able to have pork prices move up offering less pork. Weights continue to drop. As packers lose margins, the loss of weight is better for the packer. They don’t need heavier hogs and more pork. A packer has one advantage. They know the amount of pork needed for contract orders. It may be the packers intent to keep weights down.
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