Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
The CME Lean Pork Index and the CME Lean Hog Index have been working up, but the Lean Hog index is going up faster than the Pork index. Packers aren’t going to push slaughter. They will kill what they need for contracted pork orders and enough hogs to fill daily orders. Pork prices are slowly moving up and compared to beef are cheap and an alternative purchase for protein. Movement on daily sales are light and it is the export market especially from Mexico that is supporting the market.
LIVE CATTLE
Live Cattle futures continue to move up narrowing the difference between higher priced cash cattle and lower Live Cattle futures as prices move to convergence in a little over two weeks. Choice Boxed Beef on Thursday was up 16 cents with gains on Chucks and Rounds but rib and Loin primals were down. The spread between Choice and Select beef continues to narrow which normally is negative for beef prices as consumers shy away from higher grading and more expensive cuts of beef in favor of lower graded beef. They are price shopping.
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