Livestock

Out to the woodshed with Livestock.Live cattle,feeder cattle and lean hogs all limit down.Too much supply for both.Continued talk of more supply than Processing ability is not good for higher prices but reall good for lower prices.Front month Live cattle will settle below $1.00   for first time in 6 years.Weekly Slaughters continue to increase as Packers margins are still positive,lets  make money while we can.Since  margins are still good why wouldn’t you continue to bring product to market.Some action might be due to month end Plays  but I wouldnt look too much into that.The bottom line is that there is more supply than demand  and in some cases more supply then can be processed into retail product.until market  finds balance,prices should trend lower.

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