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Hog Slaughter Increases Helps Packers

MORNING LIVESTOCK OUTLOOK

Beef has been slowly moving down and it is the rib and loin primals that are dropping the most.  September is not a big time for beef.  Consumers are this year paying off high credit card bills for gas and vacations.  Cattle weights are increasing in the Midwest and packers won’t need to pay big premiums to get feedlots to keep cattle longer.

Pig Pens

Hog slaughter increasing is also helping packers. When a packer has gaps on the line, may have to slow the line or works short hours, fixed costs per hog cuts into margins.

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