Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
The year is starting out on a positive note. Pork prices compared to a week ago saw the CME Pork Index gained $1.43. The spread between the CME Lean Hog Index and the CME Pork Cutout Index was at $18.05 giving packers the incentive to push a few more hogs across the line. Kill for the week is also starting out larger than it did a year ago.
LIVE CATTLE
Beef prices have tumbled since the New Year. Consumers and retailers have all but stopped buying roasts to steaks favoring the lower prices cuts, ground beef and lower grades.
This is the first full week slaughter of 2024. Packers last week were well aware of the upcoming storms and decided to not push kill. They know the beef needed to fill contracted beef orders and must not need as much beef as they have in the past. Certainly the falling beef prices indicate less demand with larger loads of beef in the daily market at lower prices.
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