Written Commentary
MORNING LIVESTOCK OUTLOOK
It is a little early to say boxed beef has bottomed but it is a positive indicator when the 5 day average is under the current price. It is definitely something to watch. There is a positive for producers finishing cattle. Fewer cattle and this year fewer hogs in the US mean less buying pressure for feed needs. Of course there are the needs for grain exports, but for now, exports for new crop are not sure.
Kill is not overburdensome, in fact light and hogs weights aren’t heavy. Pork carcass slowly but surely moves higher. The negative side are the number of global hogs and increasing hogs in China. But China also has the goal to fill new cold storage and that is actually more than a goal but a mandate from the government. Mexico is going to be a strong buyer and the closeness to the US makes buying US pork a product where shipping isn’t as costly compared to Brazil or Europe.
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