Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
June, July, August, October 2024 and February 2025 Lean Hogs made contract highs Friday. August and October Lean Hogs have made contract highs for the 5th day in a row. April Lean Hogs settled Friday at $89.32 and the CME Lean Hog Index is $85.88 but Index is two days behind. Packers margins remain good. The difference between the Lean Hog Index and the Pork Index has remained above $10.00.
LIVE CATTLE
Beef is falling because beef has been contracted months in the past at cheaper prices. When the majority of beef, pork and poultry is sold on contract and when beef prices go up, and daily beef sales are a very small portion of beef sold and consumers want to buy the cheaper beef, prices will drop. At the same time, the U.S. is importing cheaper beef. The drop in beef isn’t due to Avian Flu. It is due to beef at high prices compared to pork and chicken.
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