Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Boxed beef cutout values are down for the month but much higher compared to a year ago. As the tables above show, beef is moving higher because of the demand for beef that can be ground or processed. The choice/select difference has considerably narrowed from a year ago. There is less demand for rib primals and a big demand for chucks and rounds going to the grinder. Loins are higher this year and due to the upcoming memorial day.
LEAN HOG COMPLEX
There isn’t much change in the CME Hog Index or the CME Pork Cutout from a week ago. The change comes from pork prices are losing faster than hog prices. When this happens packers are going to slow slaughter and that is exactly what they did this past week.
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