Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Tuesday retail buyers after a 3 day break were refilling shelves and beef prices were higher on light sales. The spread between choice and select is narrow. For one, cattle are grading high and there are fewer select cattle. Grading percent has been high throughout the summer. Also, select beef is gaining on choice as consumers are wanting to save on beef. With the high cost to replace cattle in the feedlot and with cheaper feed feedlots are going to keep cattle on feed longer.
LEAN HOGS
This week traders will be anticipating a higher kill for September and with increasing slaughter they will be expecting to see stronger exports. Last week exports surged, but it was after two slow weeks especially from Mexico. The peso has been moving lower taking some of their buying power. For the Producer cash hog prices were lower in August. The CME Lean Hog Index was $5.55 lower. The CME Pork Index lost $9.31. The packer managed to stay profitable but saw margins narrow.
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