Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
Tyson Foods says it will permanently close its Perry, Iowa pork plant.
Lean Hog trade volume picked up Monday. New contract highs were made on July, August and October but during the last part of the trading day, they gave up gains with July and August closing lower. With the lighter pork movement, pork prices benefited on early sales Monday. The daily cutout was up $3.65 and the 5 day average gained 59 cents. By the afternoon the cutout set back bit still higher up $1.40.
LIVE CATTLE
Beef prices are up but they are up on reduced number of cattle. The cost to kill per head is also going up with a slower kill. Packers have cut hours as to not battle over available cattle. What packers have bought are higher priced but cutting hours reduces margins and packers are already behind and losing. At some point packers will have to adjust more than just cutting hours.
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