Written Commentary
CATTLE
The big drop in the Dow Jones didn’t bother the live cattle or hog market as it did February and March. For one, the beef market is already down and demand for high end cuts, steaks, and roasts, isn’t anything like it was late 2019 and January 2020. On top of it, there isn’t a true cash cattle market. Packers are killing their own cattle, contracted/formula cattle and a few showlist cattle they take to fill out and round out the day. However, if it keeps tumbling, it isn’t going to be good for livestock.
HOGS
The daily movement of pork has been big over the past couple of weeks. Packers know what orders they have sold ahead and if contracting is down, packers need to sell in the daily market.. If they aren’t contracting pork, they will lower prices as they have over the past 18 days.
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