Written Commentary
CATTLE
Big movement of beef Wednesday morning. Packers likely dumping beef especially high end cuts Choice primal rib sections and primal loin sections. Rib sections down $30.25 and loin sections down $24.95. Losing as much on top products of the carcass is bearish. It shows what consumers are buying and they aren’t buying steaks and prime rib roasts. It is also showing the restaurants going back to work aren’t doing as well as hoped. Consumers are buying cheap proteins.
On top of it there are plenty of cattle and cattle are heavy. Last week carcass weights for steers and heifers combined were 53 pounds more than a year ago. Prices compared to a year ago were not far from where they are now.
LEAN HOGS
Hog futures down on slowing US exports, large global supply, and competing poultry prices. At times it isn’t good to be the other white meat. Hogs over 320 pounds getting killed at sow prices down to $13.00 -$34.00 with weighted average price of $23.52.
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