Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Boxed beef sales are showing one of the major problems why beef prices have been falling. There were more sales at higher prices for Select beef. There were 37.16 loads of Choice cuts loaded out compared to 37.88 loads of Select beef cuts. It is rare that this happens. When Choice steer and heifer carcasses average 81.1% of total slaughter and Select beef is moved more than Choice, it is a problem for Choice beef.
LEAN HOGS
Pork prices started out Monday morning higher with the day carcass price gaining 3.31 and the 5 day average carcass prices up $1.17 from Friday. Prices moving up do appear better but the carcass is moving up mostly because of bellies. Bellies are about 16.5% of the carcass yield compared to loins at 25.25% and hams at 24.5%. Loins and hams have moved higher but over the past 2 weeks the average prices has been fairly steady around $100.00 for loins and $103.00 for hams. Bellies this time of the year do get a boost. But when the belly is just 16.5% of the carcass, and it has been the recent big mover higher, any downturn could be detrimental if loins and hams remain near current levels or worse if they fall.
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