Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Cattle On Feed pre-report estimates were in line with the USDA report so no surprises. Placements, like the last report, showed most placements should see a few more fed cattle going to slaughter July through August. It does show there aren’t heavy cattle being placed and it is the reason why June Cattle have become premium to August Live Cattle. Likely no changes on Live Cattle futures Monday because of the report. Live Cattle prices are going to depend on current discounts of Live Cattle futures to cash prices, and what beef prices do over the next week and month. All in all, cattle prices are going to remain high throughout the year.
LEAN HOGS
The Lean Hog index is going up faster than the Pork index. Slaughter was up this week but daily pork sales are light. With strong exports, more pork is going to the export market and less pork is going to be available for the daily market.
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