Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Futures trade volume was light Friday. A large part of the trading was speculative spreading selling June cattle and buying June hogs. Trade volume was close to the same. On feed was up 1 percent but on the lowest estimate. Placements down 12 percent were 5 percent below the average estimate and below all estimates. Marketings were 2 percent below the average estimate and on the lowest estimate.
LEAN HOGS
The CME Lean Hog Index narrowed to the CME Pork Index for the second day. As this happens packer profit margins are less. Pork exports were less than half of the previous week and a marketing year low. A big drop in one week doesn’t mean a lot but if exports continue to drop, it is negative because exports have been a bright light for pork prices. If beef prices continue to decline, it is likely to see a drop in pork prices.
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