Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
With first notice day Monday, it was about time Live Cattle futures moved up to begin a converging with cash prices. June Cattle gained $1.75 and settled at $183.92 about $1.00 lower than cattle in the southwest last week and $6.00 below cattle in the Midwest. Beef prices continue to gain on morning sales but movement was very light with just 23 loads of choice and 9 loads of select.
LEAN HOGS
The CME Lean Hog Index to the Pork Index is at $9.07. Packers continue to show positive margins, but the difference needs to be watched. Summer is usually a time of the year when pork sales slow, further narrowing to the $8.50 or below would negative for a packers. It would also be negative for producers. Packers would slow kill or cut back on prices paid for hogs. Weights are increasing indicating packers have begun to slow kill.
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