Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
Wednesday was the third day with quiet low volume trading for June Lean Hogs. Traders essentially erased Monday’s move higher. Currently, fundamentals are negative. Hog slaughter is going up, Pork prices are cheap. Packers have adequate supplies of contracted hogs and their own hogs. The positive side are very good exports. Summer hog prices could maintain close to current prices levels as consumers fight high beef and poultry prices especially consumers already buying meat mainly as a protein source.
LIVE CATTLE
Daily boxed beef movement remains light as packers have smaller numbers of cattle ready for slaughter and as weights drop. A year ago the 5 day accumulated weighted average for steers was 1480 pounds compared to recent weight at 1443 pounds and dressed steer weights were 954 pounds compared to recent weight at 941 pounds. With fewer cattle, it is possible there could be maybe small or possibly big packers that could have problems procuring enough cattle to meet previously contracted beef orders.
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