Written Commentary
MORNING LIVESTOCK OUTLOOK
The beef industry is so interwoven, it should be expected beef imports have increased from Brazil to the US. The US needs lower graded beef for the fast food industry and lower priced chain restaurants. The US is a Choice cattle market and it can’t make enough hamburger hockey pucks for the fast food industry.
China is going to be a hit and miss buyer of US pork and beef. It will continue to take US meats but not in large amounts. When they need to refresh frozen pork stocks, they may use US pork and they may buy as they did in September before large Chinese holidays. The next holiday begins February 1, 2022, the Chinese New Year.
The trend for Cash pork prices, Cash hog prices, the CME Lean Hog Index and the CME Pork Index is down. Currently futures are not looking at the here and now but doing what futures should do, looking at the future.
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