Slow Trading in Cattle
Ahead of this afternoon’s report, likely cattle futures trading will be slow. Cash markets this week $2 or more higher. Showlists are light and packers are making big money. At this time there isn’t too much to be bullish about. Of course the report could offer a surprise like bigger placements, but I don’t see that happening
All hogs and pigs as of September 1 up 1 % is no surprise since Federal slaughter is now slightly over it compared to same period a year ago. Breeding herd at 98 may in near term be construed as slightly negative because of high side of estimates, but fewer hogs if pork demand remains strong is still fewer hogs and is friendly. Market inventory at 101 was a fraction above estimates and may be slightly negative, but with demand for pork , the report is neutral in the long run unless pork demand falls out of bed. Market inventory down 1 percent from last quarter goes along with my expectations there were sows aborted and not bread March and part of April.
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