Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
Two days of lighter slaughter didn’t do much for pork sales. Tuesday morning Pork was up 62 cents. The 5 days pork carcass is down 11 cents. Hams average $79.09 and loins average 81.34. The positive news is how the CME Lean Hog Index and the CME Pork Index continue to widen, currently at $18.52. This is positive for packers and when hogs come to the packer as the winds and snow stop blowing, they will push delayed hogs through the line.
LIVE CATTLE
Dropping temperatures and strong winds are expected and it will cause blowing snow over the next week. It will slow movement of livestock and meat. At this time, it might not be as friendly to higher prices. The weather conditions also cause a backup of livestock. Cattle will come to town for slaughter. The slower movement of beef is what packers need to slow the falling cutout. Consumers have slowed buying the high priced Choice cuts in favor of cheaper Choice primals, Select beef and ground beef.
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