Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
The CME Lean Hog Index and the CME Pork Index have been steadily falling. Most concerning is the difference with pork prices falling faster than hog prices and cutting packer profit margins.
The weak exports show why the pork cutout has been drifting lower especially the drop in hams. Mexico last week only bought 3300 mt. They have been the largest buyer of fresh hams. Maybe last week’s exports were just a 1 week low buy. If Mexico continues to slow down on exports, the export cake will have no icing.
LIVE CATTLE
Choice boxed beef was $2.06 higher Thursday gaining 1 cent from Wednesday. Movement was light with just 119 loads moved. Chucks, plates and flanks were the main reason for the change. Loins continue to move lower and so far showing no strength for Labor Day.
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