Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
The tariff is going to be the talk this week. The US bought over a half million head of cattle for immediate slaughter January -November 2024 from Canada and for the same time over a million and a quarter feeders from Mexico.
US beef buyers will need to source more beef outside of the US look for imports from Brazil and Australia to increase. US packers will likely start to cut deeper into US feedlots and weights will begin to drop.
PORK COMPLEX
On top of tariffs, there is still the possible ramifications of immigrant deportations
Mexico is the largest buyer of US pork. Mexico placing tariffs on US pork is negative. China has mostly been buying variety pork. The last time there were tariffs, China not buying variety meats cost US producers about $3.00/cwt. The February/April lean hog spread is wide and it is bearish. Nothing on the last Hogs and Pigs Report indicates markets should gain as much as the spread.
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