Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Packers profit margins have gone back to negative. Look for packers to keep kill down and beef buyers to increase beef imports through the remainder of July.
If the 50% tariffs for beef imports from Brazil actually go into effect on August 1st, beef prices will go up. But, it is very likely the fast food industry and beef grinders are talking with president trump’s team explaining the need for Brazilian beef. The same can be said for Australian and New Zealand beef.
PORK COMPLEX
Lean hogs closed higher on Monday as traders pushed August to levels where July hogs went off the board. Spread traders were also buying cattle and selling lean hogs. Trade volume was light.
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