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Hog Slaughter Continues to Drop

MORNING LIVESTOCK OUTLOOK

Steer and heifer carcass weights have improved for the past 2 weeks and grading percent has improved. Packers paying large premiums in the Midwest have encourage feedlots to keep cattle on feed longer.

The hog slaughter continues to drop. On hogs purchased on the daily buy and pork sold on the daily market, packers have negative margins. High operating costs and fixed costs will force packers to change. How soon is the question.

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