Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Live Cattle trade volume slowed down on Monday. Large funds now are most active in October. It doesn’t help beef prices to have beef exports down to just 9,900 MT. Japan the largest buyer took a mere 3,200 MT with Taiwan the next largest buyer at 1,600 MT. Exporters aren’t going to buy US beef because they can source larger Choice quantities from Brazil and Australia. The US is importing 2.86% less beef this year likely because there is more Select beef to buy in the US.
LEAN HOGS
Lean Hog futures trade volume have also slowed. CME Lean Hog prices going up slower than the CME Pork Index is positive for the packer. If needed, packers will pay more for hogs. The cheap US Dollar falling should be positive for pork especially with the strength the Mexican Peso has.
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