Written Commentary
Livestock AM Outlook
Kansas grain/feedlots jumped on $103 and moved cattle Wednesday. These feedlots sell cattle for the “city cattlemen” the doctors, lawyers, engineers and commodity traders living in the cities that like to say they feed cattle. Also, this year backgrounders and cow/calf producers that didn’t want to sell cattle in the spring when prices dumped, , they retained ownership and put cattle on feed.
Feedlot owners needed to move cattle from lots because of heavy weights and new feeders coming off grass were needing feedlot pen space. Feedlots in the north and Midwest are holding for $105.00
It is possible and likely China stopping shipments is more negative for hog prices than bullish ASF was found in feral hogs in Germany and so far not commercial herds. If German commercial hogs don’t get ASF, Germany won’t liquidate commercial hogs. If they don’t have to liquidate hogs, Germany will produce the same amount of pork. German pork will still be sold and likely at lower prices since China is out of the market. There are plenty of countries that would be more than happy to buy cheaper pork and possibly some of the countries are buying US or having to take in Brazilian pork that China was taking.
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