Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
China has increased tariffs to 125% that will go into effect tomorrow. Cattle have been following financial markets. Cash sales in the Midwest down at $207.00 to 208.00 and in the southwest $204.00. Kansas holding, as beef drops likely will sell for $204.00
Traders are getting out of live cattle futures. Open interest is dropping.
PORK COMPLEX
China has increased tariffs. It will make it hard for Chinese buyers to buy US pork.
The difference between the CME Lean Hog Index and the CME Pork Cutout Index has been narrowing where packers are seeing deeper losses. For producers when packer margins are negative, packers will want to reduce costs and a way to do it is to drop prices paid to the producer.
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