Cattle Futures Gapped Lower
Morning Livestock Outlook
Cattle futures gapped lower Monday morning with traders believing Cattle on Feed report was bearish due to high placements. However, it was no secret feeder cattle from mid-summer through August were being moved sooner than normal. Pastures were lacking any green vegetation and several areas in the Southwest and West were hot to burning. It is very likely inventories for October and November will be lighter than normal and inventories will be down.
Pork cutout started out higher early Monday and like the low volume in the futures market, the load movement was light. Bellies up $21.12 and hams up $9.52 were drivers to the upside. Loins were down $1.20. Traders will be waiting until Thursday to see what pork exports are going to do.
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