Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
President Trump is allowing the import of 300,000 metric tons of beef without tariff. 300,000 metric tons = 16,535 trucks weighing 40,000 pounds
Secretary Rollins has announced the Rebuilding America’s National Cow Herd (Ranch) Act. The act will help farmers and ranchers to turn marginal cropland into grazing land and encourage cattle herd recovery.
The trade war with Canada is back on. Although beef is not in tariffs, it is hard to say what Canada will do to retaliate. Canada exports beef and cattle to the US.
LEAN HOG COMPLEX
The COF report should be bullish for feeders. Feeder futures have been bull spread and now it is easy to see the reason. However, the heat of July is one reason why feeders haven’t been moved to feedlots.
So far sale runs are light with auctions about 50% less than a year ago.
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