Written Commentary
CATTLE
Boxed beef lower again Wednesday and again the reason for the lower beef market are the primal rib and loin sections. The equity and stock markets aren’t reflecting what the US and global consumers are doing with their money. Also, there is no shortage of cattle, hogs, and poultry in the US and around the world.
Cattle futures were up Wednesday on light to moderate trading. Speculators have the ball in their court for the next few weeks without a spot month. Cattle futures are bear spread and will likely continue to be bear spread and could widen more when funds roll out of August.
LEAN HOGS
Pork cutout Wednesday shows sellers working a formula to sell whole carcasses compared to selling big loads of various boxed primals. Like beef, consumers are buying ground products, processed pork like sausages and canned products. Loins dumped Wednesday morning, but hams jumped essentially crossing out each other’s gains and losses The carcass price has been trading from $63.00 to $65.00. China has been a buyer of carcass meat this year and likely why carcass prices about the same.
Weights are down because hogs that were euthanized in March and April were hogs from growing barns not finished hogs. Pigs that were headed into the growing barns from nurseries and heavy pigs that would have moved to finishing facilities were euthanized.
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