Written Commentary
MORNING LIVESTOCK OUTLOOK
Pork Index to the Lean Hog Index has been contracting since last week. Pork losing to hogs is negative for packers.
Noticeable in cattle that are being priced that feedlots are moving cattle in the Midwest that aren’t finished. It is unusual to see groups of cattle being sold grading 65% to 80%. Boxed beef is certainly reflecting it with Choice/Select spread out to $39.21 severely discounting Select when selling beef.
Feedlots may be moving because of high feed costs, and likely because heat is affecting rates of gain. The average grade last week was 81.9% and grade has been dropping over the past several weeks.
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