Written Commentary
MORNING LIVESTOCK OUTLOOK
The market was looking for reduced numbers and the CoF report showed fewer placements but Live Cattle and Feeder Cattle already have built in price premiums. Packers continue to add premium prices to cattle in the Midwest and in the Southwest come out with a take it or leave it low ball price. Last week the differences in prices was about $10.00 with extremes of $13.00. Through the summer look for it to continue. Packers want and need heavier Choice/Prime cattle. In the Southwest packers have plenty of their own cattle and contract cattle and buy Southwest cattle to fill out lines.
Pork and hog prices dependent on supply. About a week and half of hogs is missing compared to a year ago and weights have been dropping. Prices are supported because of the lack of hogs. If estimates are correct , the hog industry in the us is going to continue to see lower numbers. Currently Mexico is the only decent buyer of US pork and going forward, it doesn’t look like that will change.
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