Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Starting out the week, August live cattle look like packers are going to take off more cash. There is a big discount to Midwest cattle and about a $2.00 to $3.00 discount to the southwest. Boxed beef was higher on Monday but load movement was light with a total of 99 loads, 61 loads of choice and 22 loads of select. With the light slaughter of last week, beef prices should be up. Packers are going limit kill until they can see a profit from slaughter.
LEAN HOGS
The CME Lean Hog Index and the CME Pork Index have been steadily falling. Most concerning is the difference with pork prices falling faster than hog prices and cutting packer profit margins. The 5 day daily carcass price dropped to $99.80 below the $100 level.
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