Trade today could be slow before Cattle on Feed Report. Somehow the USDA is going to need to explain why Federal USDA slaughter for the year is down from the same period a year ago by over 5%.
Next week packers may not have to be as aggressive buying cattle as they have this week. If there are Yield Grade 4s and 5s in their September formula cattle, they may start pulling some forward.
Fresh Hams are the engine driving pork cutout higher. As it was expected, Mexico was the number one buyer on the Thursday morning export report. As the US Dollar Index shows, it is a great time for exporters to buy US commodities and if an exporter started loading up when pork was low, when it comes to actually pay for the commodity, the cheap US Dollar made buying all the better.
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