Written Commentary
CATTLE
On Tuesday’s morning boxed beef loads there were almost 4 more loads of trimmings and ground beef sold than choice loads. By the afternoon, Choice movement improved on a lower market. Choice primal rib sections were down $7.62 from Monday and loin sections down $2.37. The 5 day average for Choice is over the current price. Add on cattle are 50 pounds over a year ago.
When grains rallied Tuesday, Feeder Cattle reverse the morning move to the upside. Feeder futures have been bouncing in a tight range for close to 2 months. Receipts of heavy weight feeders are likely to increase during July.
LEAN HOGS
Loins lower on pork cutout Tuesday, bellies down 14.98. Hams up 226. Carcass prices at 63.12 is lowest over the past 5 days and 2.28 below 5 day average. $63 loins and $41 hams are cheap. A carcass at $63 to $65 is cheap. Hog carcasses are going to further processing where entire hog goes to trimmings or ground market. Consumers aren’t buying pork chops and big hams.
About 10% of hogs are selling on the direct market compared to packer owned and formula hogs. Since the pandemic reduced kills and packers cancelled and then moved previously contracted hogs into the cash market the differences in prices became very obvious to what open market direct hogs and the formula hogs.
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