Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
PORK COMPLEX
Hogs on light volume were lower Monday. Slaughter is slowly increasing and recently, the difference between the CME hog index and the CME pork index has begun to narrow putting packer margins in a negative light.
CATTLE COMPLEX
Live cattle were higher Monday after last week’s strong cash cattle prices with the 5-day negotiated price at $221.00. Traders were also actively bull spreading cattle and buying cattle and selling hogs. Boxed beef was higher and when there are only 81 total loads moved it is expected to be higher. The light kills are hurting packers. At the beginning of 2024 they were able to reduce union pay by cutting hours, now with even a lower slaughter and cattle inventory, it’s up to the packer to reduce their costs.
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