DTN Early Word Livestock Comments 09/23 06:36
Traders may have turned a bit friendlier to the market on the possibility of
a bullish Cattle on Feed report. Hog futures did not share the same enthusiasm
closing moderately lower even though estimates for the Hogs & Pigs report
should be supportive.
DTN Contributing Analyst
Cattle: Lower Futures: Higher Live Equiv: $225.77 -2.14*
Hogs: Lower Futures: Mixed Lean Equiv: $114.14 +4.16**
* based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. Index has been updated to depict recent changes in
live cattle weights and grading percentages.)
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle futures turned higher Wednesday as traders seem to be anticipating a
friendly Cattle on Feed report. The expectation is for tightening cattle
numbers as we move into next year. The inability of futures to push below
support on Monday and the upcoming report triggered short-covering and
positioning ahead of the report. More confidence in the economy with strength
in other commodities as a result, provided some support as well. Cash cattle
traded Wednesday with the South trading general steady with last week at $124
while the North averaged $1.00 lower at $198 on a dressed basis. Boxed beef
price fell again Wednesday with choice cuts down $3.54 and select cuts down
$2.51. Weekly exports sales will be released Thursday but may not have much
influence on the market as traders focus on the Cattle on Feed report Friday.
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