Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
PORK COMPLEX
Trade volume was light Wednesday. Traders are evening up before the Hogs and Pigs report. With hog futures above cash prices and a few dollars below contract highs, as well as the end of the month, spec traders aren’t going into the report overloaded with positions.
The difference between the CME Lean Hog Index and the CME Pork Index has been narrowing, but it is still positive for packers. But with hog prices moving higher faster than pork prices, the advantage for the packer is knowing the number of hogs they need to kill to fill pork orders from buyers.
CATTLE COMPLEX
The biggest grilling day is July 4th. With it falling on a Friday making it also a long weekend, beef will be in more demand. Cow/calf producers are keeping cows longer. Beef cow slaughter is down 17% from January through May. Producers are breeding older cows.
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