Written Commentary
LIVESTOCK OUTLOOK
Into 2021, cattle numbers should see a slowdown in the US. Less cows were bred during the spring and there was cow liquidation with the extreme heat and drought in the Southwest to West.
But into 2021, beef will be competing with more pork and poultry. China has 2.5 times more poultry it built up to make up for less pork. It is good for grain US producers but it means US livestock producers have to hedge feed if they have not already done so. The average pork price in China is at the lowest level since mid-June at CNY42.37/kg ($6.37/kg), according to data from China’s Ministry of Commerce. The hog herd is around 90% of the inventory before African Swine Fever.
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