Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
August Live Cattle settled Tuesday at $177.95. The 5 day average negotiated steer price is $184.91. There have been no deliveries for August Live Cattle and with the wide basis, its likely there won’t be deliveries. Boxed beef was higher Tuesday with Choice morning sales at 317.20 and Select at 289.68. Only 54 loads of beef were sold. Packers are keeping daily beef movement a close count trying to support prices. Packer margins are in the red and they are not going to kill any extra cattle. Negotiated Average Weights have been moving up.
LEAN HOGS
Trade volume was light again on Tuesday. Pork prices continue to drop and as pork drops so do hogs. Compared to Monday the 5 day carcass average Tuesday morning was down $.89. Pork prices rallied over the summer because it was cheap compared to beef but with lower beef prices on lower priced beef products, consumers expect cheaper pork. With the increasing slaughter, there is also more pork available.
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