Written Commentary
MORNING LIVESTOCK OUTLOOK
Very little in cash trade so far for the week. Scattered small lot buying. This week packers are buying for the short slaughter week after July 4th. There are plenty of cattle available but there is a slight problem, the weight of cattle. Packers need Midwestern cattle to grade higher and to be able to buy heavier Choice and Prime cattle. If they keep paying premiums for the fancy heavier cattle as they have over the past 4 weeks, feedlots will keep supplying them.
Tuesday, the CME Lean Hog Index was over the price of the CME Pork Index. On the daily market, packers are paying more for hogs than how they sell pork. Packers have to do it because they need hogs. Monday, slaughter was adjusted down 8000 hogs and Tuesday, slaughter was estimated only at 450,000 head. Year to date as of June 25, 2022, slaughter was down 2,716,000 head compared to a year ago. The hogs and pigs report could give clues what packers might do.
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