Written Commentary
LIVESTOCK AM OUTLOOK
The daily load movement of boxed beef has been increasing. At the same time beef prices have been falling. Going forward it will be important to watch if daily load movement continues to increase, becomes larger or if it drops. An increasing load movement with falling prices indicates less beef is being contracted and likely less beef is being sold for the export markets.
The world is also going to flush with pork in 2022. Russia has been increasing production since 2009 with large increases over the past 5 years. After two bouts of Chicken Flu, China has rebuilt the egg and chicken population. Like hogs and cattle, Brazil poultry numbers are growing.
A lower US cattle inventory is needed but it may be a little too late to see price improvement over what futures are now offering with spreads.
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