Exports Big Plus For Pork
MORNING LIVESTOCK FUTURES OUTLOOK
If the UAW goes on strike, it won’t be positive for beef. The higher priced cuts, ribs and loins are already moving off the pre-Labor Day highs. Demand for ground beef is strong now and only will get stronger with weakening for roasts and steaks. US beef exports are down in 2023 and it doesn’t look much better for 2024.
The CME Pork Index has widened out to $11.32 over the CME Lean Hog Index. Packers will try to push more hogs to slaughter especially as more pork isn’t putting price pressure on the daily pork market. Exports are the biggest plus for pork, but exports are dependent on Mexico. With the US Dollar strengthening, exports to Japan, South Korea, China and Canada likely will lag into the end of the year. However, China could increase exports in September ahead of the Fall Festival.
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