Written Commentary
MORNING LIVESTOCK OUTLOOK
It is beginning to look like Choice boxed beef is turning back up. The Choice price Tuesday was $ 248.04 compared to the lower 5 day average at $246.35. When this happens, it is one of the first indicators. Secondly indicator is a lighter movement. This is becoming harder to use because daily beef movement is a small part of beef sales but when sales are light, it means the majority of beef is needed to fill previously contracted orders before beef can be offered on the daily market. Another indicator is how packers retained price throughout last week and even tacked on higher money for cash cattle Friday.
Hog kill and hog weights have been increasing. The price of pork has been dropping. Pork prices are dropping faster than the price of hogs. It is a combination for lower markets. Top it with slow demand for exported us pork and the drop on hogs is acceptable. Add in the reluctance of hog producers to sell hogs during august and the recent avalanche in hog prices is easier to see why it has happened.
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