Written Commentary
MORNING LIVESTOCK OUTLOOK
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The move up in beef prices are staggering. The retailers that buy “day to day,” the small processors that don’t contract and consumers are feeling the brunt of the high costs. Most beef is contracted from two to three months to more than a year on span indexes and forms of composite pricing with formulas, grids and/or forward pricing. No matter how it is priced, it is to guarantee quantities of beef into the future from seller to buyer.
Cash hog prices slowly dropping. US needs to increase exports but unlikely with increase hog numbers in China and trade agreements made between countries in 2020 when US tariffs were slowing US exports. 5 day average on pork carcass is down $2.10 from a week ago.
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