Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Packer buyers took last Friday off and cash cattle buying was quiet to none. Slaughter was down to 603,000 with many plants slowing Friday’s kill and all but a few plants closed on Saturday. Weights continue to drop so slowing slaughter last week will at least put a few more pounds on cattle. Federal slaughter year to date is down 2.8%. Beef prices have been quickly moving up especially for lower prices primals but also have been buying primal loins indicating there are consumers buying for the summer grilling season from hamburgers to steaks. Unemployment at 3.6% is low and low unemployment is good for beef sales.
LEAN HOGS
Last week cash hog prices were lower, pork prices were lower and slaughter is up 1.4% above a year ago. Exports are the only bright spot of the pork complex. Packers keep slaughter at levels so margins don’t keep dropping slaughter faster. Large traders are bear spread. Farrowing intentions may be down but intentions are purely estimates and for mega producers, it is all about getting numbers of hogs in one end of the grower building then out the other side to the packer.
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