Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
Columbia becomes first country to restrict US beef imports on bird flu outbreak. Columbia doesn’t buy much beef from the U.S. but to see a country restrict buying beef, the question is how many countries may do the same. According to the latest reports from U.S. Meat Export Federation, Columbia bought January – February 1,243 MT of beef from the U.S. Not buying US Beef sets up they will go to other countries such as Brazil to make up what they won’t buy from the U.S. Exports are already down in 2024, the U.S. certainly doesn’t need more countries to follow the lead from Columbia.
LIVE CATTLE
Thursday, Live Cattle futures opened steady to slightly lower, moved lower and then turned around to close higher near the level of Tuesday’s close. Moving higher it discounted that the Dow Jones was 500 points or more lower with concerns of high inflation. Volume was moderately active with speculative bull spreading.
LEAN HOGS
The CME Pork Index is in a steady decline and so is the 5 day pork carcass average. The CME Pork Index continues to narrow to the CME Lean Hog Index for the 6th day. As this happens packer profit margins are less. As of the April 18, 2024 export report, pork exports down 25% below the 4 week average. Mexican Peso continues to move lower.
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