Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
August Live Cattle on Tuesday settled at $179.10 . The 5 day negotiated steer price is $186.37. The spread recently has been widening with futures moving down and cash higher. Spread encourages feedlots to sell as soon as packers will take the cattle especially in the Midwest. This also keeps weights from getting heavy. Packers were active in Iowa Tuesday. Prices were steady with last week.
LEAN HOGS
During June and July pork and hogs moved higher because pork was dirt cheap. Also, fund traders and big speculators were on the sidelines and no longer short hogs or having hogs the short legs of spreads. Now with the increasing hog slaughter, exports leveling out and retail beef prices down, pork hit a resistance. Loins and hams faltered at recent highs. Bellies have become volatile but bellies aren’t a major factor moving the carcass price when bellies are just 16.5% of the primal yield. Hams were higher Tuesday but when total movement on hams was 7.15 loads, when so few are for sale on the daily market, if a buyer needs hams, they must pay the price asked.
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