Tightening Supply in Cattle
MORNING LIVESTOCK OUTLOOK
The COF report was friendly but not what you call bullish because Live Cattle had big premiums pre-report.
A downturn in weights and downturn in grading percent indicates cattle are being sold early and are current, and in Southwest they are too current. Look for packers to continue to pay premiums for high Choice heavier cattle and discount low choice and Select cattle.
The 5-day pork carcass is not racing higher but leisurely moving higher. The same can be said for the cash hog market and the CME Pork Cutout. With the pork cutout gaining faster than hogs, packers are back to working in the black.
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