Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Choice boxed beef prices dropped on Tuesday. Tuesday’s Choice price, $336.91, is below the 5 day simple average price, $340.47, often an early indication that boxed beef prices will move down. If beef prices continue lower, packers likely will use it to lower cash cattle prices following the drop in cash cattle prices last week. Beef is going into the time of the year where beef roasts are replaced with quick cooking recipes that don’t heat up kitchens.
From August into 2024 traders are bear spreading. The past two COF reports have anticipated placements higher and more cattle this summer.
LEAN HOGS
With June Lean Hogs off the board, it is a time when speculators come out in force. June Lean Hogs last traded at $87.20. Since then, Lean Hogs have moved up. July Lean Hogs closed higher on Tuesday at $93.20 with July $6.00 over where June settled. July 2023 moved to the 200 day moving average and found resistance.
Pork prices were higher on early sales Tuesday and lower on afternoon sales. Over the past month plus, pork has been higher. Cash hog prices are higher. Pork and hogs have been improving on demand for pork, slower slaughter and a decline in weights.
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