Written Commentary
CATTLE
Traders use US pork and beef exports as an indicator for possible market direction. But most US traders seem to forget that US meat exports are just a slice of the pie in the global meat market. 99% of US traders are surprised and some find it hard to believe that India has the largest cattle production followed by Brazil, China and the US comes in fourth. They are also surprised that Brazil and India are first and second for beef exports and the US is third.
Across the globe, consumers are buying whatever is the cheapest. With the US raising around 80% Choice grain fed cattle, US beef isn’t cheap. When consumers around the world are buying meat for daily protein requirements, they aren’t buying Choice and Prime.
LEAN HOGS
The daily movement of pork has been big over the past couple of weeks. It appears packers are not wanting to store and since the start of May exports have fallen off from the first 4 months huge exports especially to China.
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