Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
The larger than expected placements on the COF report suggest traders will continue to widen bear spreads during a time when beef sales slow. Trade volume was light Thursday with August by far the most actively traded contract as traders moved it higher to narrow the difference between August and June and higher cash cattle prices. Volume is likely to be light Friday with large funds waiting to come back in July, the 2nd half of 2023.
LEAN HOGS
United States inventory of all hogs and pigs on June 1, 2023 was 72.4 million head. This was up slightly from June 1, 2022, but down 1 percent from March 1, 2023. The report is neutral to slightly negative for All Pigs, Kept for Breeding and Kept for Market with numbers above estimates. The farrowing intentions is slightly friendly. However, with more pigs per litter the lower farrowing intentions won’t be as big of change in hog numbers. July 2023 Lean Hogs are now pretty much in line with current prices and will trade on how well pork is doing in July.
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