Written Commentary
MORNING LIVESTOCK OUTLOOK
Packers backed off buying last week and will need cattle for this week and next week, but the buy for January depends on how many cattle they have from contracts for January and their own cattle. There could be heavier cattle on showlist as producers often hold cattle the last couple weeks of the year.
Feb hogs were down Tuesday. The spread between the CME pork index and February hogs is $11.46. It is too wide.
With China increasing the tariff for pork from 8% to 12%, the competition to export pork is going to get harder. Brazil’s pork production is expected to 5% higher in 2021 and another 2% increase in 2022. The EU is expected to drop possibly 1% but Ukraine is quickly adding hogs with expectations over 6% with funding from Chinese investors.
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