Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
Lean Hogs reversed closed lower. Cash hogs have been moving slowly higher as has pork, but current prices for both cash hogs and pork are far from where June Lean Hogs are trading.
The Peso is strong especially compared to the U.S. Dollar. Mexico is and has been the best buyer of U.S. pork and in 2023 . Mexican buyers are buying more pork to fight inflation. So far, it has not hurt that they are also buying more pork in 2023 from Brazil. The Peso is strong to the U.S. Dollar and the Brazilian Real. Mexico has purchasing power.
LIVE CATTLE
For a second day Live Cattle trade volume was active with June GLOBEX volume 34,688 contracts. June Live Cattle closed down $1.25. Last Friday April 2023 Live Cattle closed out trading at $175.17 and as of Wednesday , June Live Cattle are $13.52 below April’s settlement. A year ago, April 2022 Live Cattle settled at $141.90 and when June 2022 Live Cattle went off the board, it settled at $138.00.
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