Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Live cattle futures were down Tuesday on technical trading and spread trading. For instance, August live cattle moved down to within 10 cents of the low made on April 23rd before moving off the lows up to the 5 day moving average.
Choice beef was higher on Tuesday morning and higher than select which is a positive indicator for beef prices. Choice has started to move up faster than select. Going into July 4th where hamburgers go for the grill and when stores will have specials for 80/20 beef blends. Increasing beef imports are likely keeping select from larger move higher. Cattle not coming from Mexico are being replaced with beef imported to the US from Mexico.
LEAN HOG COMPLEX
The pork price is moving higher faster than lean hogs putting packers into positive margins. It is likely packers will increase slaughter.
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