Written Commentary
AM Livestock Outlook
Packers paid $1 to $2 more on Friday over lower mid-week prices. If they want to have a big kill this week and packer profits over $400 should make sure they want a big kill, cash cattle prices should be up $2.00 or more this week.
Beef prices lower on fairly large sales . Seasonally beef retail sales slip in September and as grills are put away in northern climates, high end cuts, rib and loin sections were entire reason cutout fell this past week.
Cash direct hogs have seen a big jump in prices over the week. By Friday September 11th, direct hogs were up on the weighted average $8.51 and Direct formula hogs gained $3.39 compared to a week ago.
The news of finding a hog in Germany with ASF was fundamental news traders could use as positive news, but hogs have been going up since late August. The US Dollar is cheap, and exports have been very good. Packers are making big money and if anything drives a market it is when packers have big profit margins and need hogs. Weights are working lower which shows packers are not leaving hogs in pens if they are ready.
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