Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
Hog weights have been steadily dropping over the past two weeks. To maintain the slaughter, packers are pulling up lighter hogs from packer owned and packer buying programs. May 2023 Lean Hogs settled at $76.62. The CME Lean Hog Index at $76.50 is $10.70 under June Lean Hogs settling Tuesday at $87.20 and also widening on Tuesday.
LIVE CATTLE
Tuesday Live Cattle futures volume was moderate. Hedgers don’t want to sell with the discount to cash and longs are either old longs or are wanting indicators to add. This week many traders are sidelined and waiting for the COF report on May 19th. Slaughter picked up last week but to do it packers were buying fewer negotiated cattle and pulling cattle forward.
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