Written Commentary
MORNING LIVESTOCK OUTLOOK
The Dog Days of Summer for beef buying begins after the July 4th break and goes through mid to late August. Also, consumers will be “price shopping” comparing price of all proteins during the summer and price will be an important decision maker. Packers will need to be more competitive to move beef in the US and globally. With China backing off pork and beef purchases, Brazil will fight to keep pork and beef exports along with all exports flowing out of Brazil.
Trade volume increased Tuesday with buyers putting July lean hogs over the latest price of the CME Lean Hog Index and august moving higher. The recent hogs and pigs report is looking for a 1% decrease in hogs. But how long can packers continue to kill hogs with negative profit margins is the question.
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