Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
It is positive news for packers as the CME Pork Index is moving higher and faster than the CME Lean Hog Index. On July 18th the spread moved the spread with the pork index $9.83 over the Lean Hog index putting packer margins into the black. The daily Pork Price Sheet is showing a turn higher for pork especially for hams and somewhat for loins. These two products make up 54% to 55% of the cutout.
LIVE CATTLE
Cash cattle sales started Thursday. Both the Midwest and the southwest sold cattle mostly $2.00 lower. Fob steers in the Midwest mostly 196.00 to 197.00 dressed steers $309.00 to $310.00. The spread remains wide between regions. If the cattle on feed report is bearish, the downside for October live cattle on out into 2025 likely will see bear spreads widening with additional pressure on futures as speculative traders reverse long live cattle and short lean hog spreads.
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