Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Cash prices last week were steady to slightly weaker in the Midwest and in the Southwest mostly steady. Buying activity was light as packers were buying for the short Labor Day week. Labor Day is the last summer holiday. For 2024, consumers are putting ground beef on the grills but not steaks. For 2025, if beef follows the past 2 years, beef demand increased for Easter, Memorial Day and July 4th.
LEAN HOGS
For the producer, cash hog prices were lower in August. The CME Lean Hog Index was $5.55 lower. The CME Pork Index lost $9.31. The packer managed to stay profitable but saw margins narrow. Hog slaughter is increasing, cash hog prices and pork prices are steadily going down. Pork imports are above a year ago. Add to it that beef prices are trending down. As hogs move from summer weather into the cooler Fall temperatures, weights will improve carcass weights 5 plus pounds.
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