Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Cattle traders had their own April Fool’s market Wednesday. Traders at first moved futures up with April live cattle up to the February 4th high followed by profit taking. June and August made new contract highs followed by profit taking.
Oil prices skyrocketed after President Trump’s speech. The higher gas prices go, the less consumers will spend on beef. However, it is like a catch 22, with beef and cattle inventory at current levels, the lack of supply of beef will have wholesale remain high. Consumers will shop other proteins than beef.
LEAN HOG COMPLEX
Pork prices have been slowly losing as slaughter picks up. Exports need to increase or at least keep above 20,000 mt with Mexico averaging over 10,000mt.
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