Written Commentary
Livestock Outlook
Need to monitor cattle and hog slaughter. Tuesday was the third day cattle and hog slaughter has been revised down which is reminiscent of what happened late March and April as the meat packing industry became hot spots. COVID 19 is increasing in Texas, Oklahoma, Iowa , Minnesota and Montana.
Tuesday’s morning sales indicated that consumers want what is the least expensive even when it comes to grade. When a store sells ground beef from Chucks and 90% lean to 10% fat, it’s likely a mix of Choice and Select combined with lower grades unless the grade is noted . Lower Choice beef prices also indicate the US beef market with 80% Choice cattle and lately overfed and overweight cattle is competing with itself as well as imports with leaner and cheaper beef.
Pork movement Tuesday was moderately strong with the carcass down. Loins gained 1.88 in the morning but ended the day down 1.29 but hams lost 5.54. Bellies were up 97. It was ribs up 5.00 that kept the cutout from falling harder.
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