Written Commentary
MORNING LIVESTOCK OUTLOOK
Extreme heat with high humidity in the Southwest affecting feed conversion. Next week high heat in Plains and parts of the Midwest but temperatures at night allowing cattle to eat.
Last week Live Cattle settled the week higher. Traders still are expecting bigger numbers going into summer but with June discount to cash this week’s move up was needed with June gaining the most.
Smithfield announced closing a plant citing costs and regulations. The plant is also in the West where sow numbers have been dropping causing the packer to ship hogs for kill further distances.
Compared to the same time a year ago, hog slaughter is down 2,588,000 hogs. It is a lot of missing pork and is well over a week’s total slaughter.
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