Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
There was an uptick on hog weights Friday and Saturday, but Monday hogs weights dropped. More and more it looks like the demand for pork is strong and it should be with high priced beef. But packers keep adjusting down slaughter and are offering less pork. The difference between June and the Hog Index is down to $1.73 with futures over the Index. This narrow of a spread is negative for packers.
LIVE CATTLE
For now, at least up to the next COF report on June 23rd if there changes to previous reports, traders are expecting a few more fed cattle for slaughter. The market is bear spread from August out because of it.
The first extreme high temperatures are now in south central Texas and in areas of Oklahoma with areas well above 100 degrees. Although it isn’t across a lot of the cattle feeding areas, it is likely just the beginning where high temperatures will limit weight gain and limiting adding pounds at this time is not what cattle producers and packers in the Southwest need where weights are already low.
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