Written Commentary
CATTLE
Today’s boxed beef helps to show it what the consumer is buying. High end cuts are bringing down boxed beef. Primal rib sections Monday were down $18.46. Select primal rib sections were down $13.32. Consumers are buying price and not high end cuts.
If weights remain high and slaughter remains at current levels, when packers bid on showlist cattle, there likely will be severe cuts for Yield Grade 4’s and 5’s. A month ago packers weren’t discounting heavy cattle.
LEAN HOGS
Monday pork is starting out lower on cutout, losing 4.79 . Loins down 4.79 and hams losing 16.96. When half the value of the carcass loses as much as loins and hams, it is bearish.
Pork has been dropping for close to a month on fairly good size movement, so it doesn’t appear buyers are too concerned, and it doesn’t look like packers are storing for sales into July and August.
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