Slow Trading Ahead of CoF Report
MORNING LIVESTOCK OUTLOOK
Expect slow trading ahead of Cattle On Feed report. Unless boxed beef drastically changes direction this week, up or down, packers need to buy cattle but they aren’t going to add much more than $1.00 to do it. Select beef sales are too large in comparison to Choice. Packers getting more than enough cheaper beef that they can fill orders on trimmings and ground beef that keeps Choice beef from any large rally and actually pressures it.
Packers dropping hog prices and at the same time are able to increase pork prices. Weights are moving up. All three are beneficial for the packer. It isn’t positive for the producer.
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