Written Commentary
LIVE CATTLE
With the drop in boxed beef and increasing slaughter, as June Live Cattle go into delivery, it will be hard to see how cash cattle or futures could move up. The beef market is in a high speed downturn. Good economic news with people going back to work didn’t faze futures or the beef market Friday.
There are more than enough cattle at the present and moving into June and July there will be far more than enough. Feedlots that took cattle out of feedlots and put them on areas where they could eat grass or be fed hay will be re-entering feedlots. Combined with contract and packer cattle already on feed, the retail market this summer will go from rationing beef to surplus especially if imports stay the same from Brazil, Australia, and Mexico.
LEAN HOGS
China over the past 4 weeks has stopped the surge buying of pork. After breaking records the first quarter and April, May exports to China and Mexico just mediocre. China has a surplus of poultry and has record imports from EU and Brazil. Their hog numbers are rapidly increasing. During May as US pork prices skyrocketed, pork in China dropped. It is likely China has refilled depleted pork reserves and buying going into 2020 will be much lighter than expected.
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