Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Trade volume was surprisingly light. Trading mostly was rolling April to June with April Globex volume 16,745 contracts and June 15,873 contracts.
Poor weather made moving livestock difficult Monday and packers killed fewer hogs and cattle.
JBS claims to have the cattle that are scheduled for slaughter at the Greeley facility going to other plants. Time will tell. When the plant in Lexington, NE shutdown, cattle were said to be scheduled for other locations, but slaughter isn’t at the levels is was before the shutdown.
LEAN HOG COMPLEX
Pork prices have been steadily gaining. Cheaper retail pork prices compared to high priced beef and now more money spent on gas should keep pork demand up.
A couple plants were down due to weather in the upper Midwest on Monday so slaughter was off. With positive packer margins, expect slaughter to increase throughout the week making up for the light slaughter.
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