Written Commentary
MORNING LIVESTOCK OUTLOOK
Packers must decide what they are going to do about weights and grading percent dropping. Possible to see packers slow chains or to start to see packers slow kill by going to extended and early yearly maintenance programs where plants are closed not for two or three days but a week. After July 4th beef prices often go into a decline through the dog days of summer. Two factors will affect prices this summer on top of normal slowdown in beef purchases: when the decline in cattle numbers begin and of course consumers buying patterns with inflation.
Compared to the same time a year ago, hog slaughter is down 2,588,000 hogs. It is a lot of missing pork. It is well over a week’s total slaughter. Spread trading this week has been active. Traders were selling summer hogs and buying October on out and selling hogs and buying cattle. Algo traders aren’t doing one spread at a time but multiple legs and often combining inter and intra market spreads.
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