Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
With placements down 10% and 4.5% below the average trade estimate, the COF report is friendly when using estimates but placements in May are 2,000 head more than were placed in April.
I don’t think many traders are watching beef imports as closely as they should. Last week beef imports were up 11% for the year at 831,674 metric tons. It helps to explain why choice beef is gaining on select beef. The US is bringing more lower grade beef which will bring down costs for ground beef.
LEAN HOG COMPLEX
Exports were down for the second week. It is disappointing Mexico took only 4,100 metric tons. It’s the second week their purchases were low.
With China slowing pork exports from all countries, large exporting countries such as Brazil and Spain need to push more exports on countries such as Mexico, Japan, South Korea and Canada. With Russian exports coming on fast, there is more export competition.
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