Written Commentary
MORNING LIVESTOCK OUTLOOK
Packers are pushing the slaughter line either to get as many cattle through ahead of winter storm that is expected to have first rain, then ice followed by snow or they need cattle to fulfill contracted beef contracts. But after the bad weather normal temperatures are predicted.
Tuesday was another light volume trade. Trade volume was 16,862 contracts for April Lean Hogs. Hog prices are at current levels because slaughter is down. Before the COVID pandemic, slaughter was consistently over 495,000 head per day and many times went over 500,000 head per day. Across the Midwest, it is easy to see especially small family hog producers don’t have hogs and now with high grain prices even with high hog prices, they don’t intend on repopulating.
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