Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
Pork prices were higher on early sales Monday on light volume. Hog weights for Friday’s and Saturday’s slaughter compared to Thursday were up 1.5 pounds to 2.5 pounds. It appears packers are trying to support pork prices by keeping kill at current levels versus pushing more hogs through. With the CME Lean Hog Index gaining on the CME Pork Index packers lose if they have to pay up for hogs and sell pork for less.
LIVE CATTLE
June Live Cattle through December Live Cattle are discount to cash and with spreaders bull spread and buying cattle and selling hogs, sellers didn’t seem willing to add to shorts on Monday. There is more talk about a looming recession, and high beef and food prices. For the first quarter of 2023 the US is importing as well as exporting less beef. Along with packers concerned about low slaughter are weighing on cattle since it topped in April.
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