Written Commentary
MORNING LIVESTOCK OUTLOOK
As expected, Live Cattle trading was slow on Tuesday and should remain slow until Friday’s Cattle on Feed report.
When almost as much Select beef and ground beef is sold compared to Choice sold, it shows consumers are concerned about high food prices. It isn’t positive for the beef market. When cattle numbers begin to go down, and if prices of beef go up because of it, the question has to be how will it affect the cattle market?
Tuesday was another light volume day of trading for lean hogs. June trade volume was almost identical to July that indicates rolling is still taking place.
CME Lean Hog Index to the CME Pork Index continues to narrow. It is negative for packers. Until it widens, packers are going to buy just enough hogs to fill previously contracted pork orders and a few hogs they need for the daily pork buyers.
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