Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
In less than 2 weeks, October 2023 Lean Hogs expire. Currently, the Lean Hog Index is at $84.55 and October Lean Hogs settled Wednesday at $79.92. The 5 day average carcass prices Wednesday morning was $96.11 and has been moving lower this week. The current CME Pork Index is $96.44.
Now, with larger slaughters of hogs, pork prices are helping to bring down beef prices but with larger hog slaughter, it will be hard to bring pork higher. It is the loins and hams that are the drag on the pork complex.
LIVE CATTLE
Packers dumped Choice beef Wed. Rib primals down over $25.00 since Fri with all primals down Wed. By mid-October, boxed beef needs to see increasing demand for Choice/Prime rib and loin primal sections for the November/December holidays. Cattle weights are improving and that is good for the feedlots. It is starting out to be a fall that is good for feeding cattle. Wet and cold temperatures aren’t hurting feed conversion the Midwest. Temperatures in the Southwest start to drop from the 90’s to normal early fall highs and lows. Weights should start to improve.
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