Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Boxed beef and cattle prices over the past 2 weeks have gone in opposite directions.
The closing of Tyson plants won’t interrupt slaughter. Maybe a few days when cattle are shifted to other plants but, the cattle aren’t disappearing. The plants being closed are older and Tyson over the past two years has been actively modernizing other facilities.
Feeder cattle prices are going to depend on the amount of cattle that will be needed to fill previously contracted beef orders. Feeders are bull spread and over the past week spreads narrowed but still have wide spreads.
LEAN HOG COMPLEX
Increasing hog slaughter for the week didn’t hurt pork prices with the Pork Index up 58 cents.
Lean hogs were a leg of the cattle/hog spreads and hogs gained on cattle, outright lean hog futures did little.
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