Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Live cattle futures started out the week with a lot of volatility and a big increase in trade volume.
Beef exports aren’t much support to the beef market. When the largest buyer is Mexico and they only take 2,000 mt and mostly high fat products and trimmings to blend with their lean cattle and cow meat, it shows why exports are so low.
LEAN HOG COMPLEX
Pork exports have been steadily moving lower. It was disappointing to see Mexico only taking 6,100 mt and not the top buyer. It was even more disappointing that South Korea took nothing.
Spread traders continue selling lean hogs and buying live cattle. This week, the June live cattle/June lean hog spread had cattle gaining $5.97 over lean hogs.
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