Written Commentary
Cheap US Dollar is encouraging exports along with several pork, poultry and beef plants in Argentina and Brazil shut out of China because of COVID 19. South Korea has been big buyer of beef. More than likely part of South Korean’s exports are going to China through grey market.
Live cattle and feeder futures settled up Thursday at the levels when cattle broke hard March 4 – 6, 2020. For the week boxed beef has improved on primal rib sections but chucks and rounds down for the week. Movement has been light on daily cutout compared to June and especially when there were shortages.
August Lean Hogs settled below a gap and below all moving averages. October Hogs are just $1.37 above the lowest settlement on July 8, 2020. August settled at $51.42 and $1.52 below the latest CME Index. Similar to Live Cattle trade volume was and has been light. Throughout the day, trade volume in hogs and cattle were very close. Strong pork exports during July are encouraging.
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