Written Commentary
Livestock Futures Outlook
Wednesday, the Fed Cattle Exchange will have 890 head, 4 lots from Kansas and 3 lots from Texas. The number of head at this sale is back to levels before packers were backing up cattle. It is likely good indication packers are current and vast majority of cattle that were backed up are now killed.
August settled at 53.07 right in line with CME Lean Hog Index. Cash lean hog market on direct hogs down $1.25 for Monday and Tuesday. Weights are dropping showing hogs current. Packer margins last week lost about $18.00/head. Packers aren’t going to push prices and lose margins. China is saying going forward, they will buy pork but not in the large tonnage of early 2020.
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