New highs were reached yet again for futures. It is interesting to see how easily this market has put its blinders on regarding this problematic slaughter situation in the Southeast. As long as there is still the talk of lower supplies into November, it is taking a back seat regarding pricing.
It is now National pork month. This month of pork features at the retail counter was started to help each the strain from the heavy supply portion of the year. The effect on this year's pork pricing won't be easy to calculate. We are coming into a very well supplied meat environment.
Fundamentally, as I spoke to some cattle clients over the past few days with the heat dome or the "death dome" approaching much of the Midwest this week, just keeping weights the same will be a victory.
Last week we noted our original $78 per pound expiration target for summer futures would need to be raised up to $80. It was still a bearish price forecast compared with prices at the time was simply was not as bearish as it could be.