DTN Early Word Livestock Comments 08/11 06:19
Weekly Export Sales to Influence Trade
Livestock were higher across the board Wednesday. Light cash cattle trade
pointed to the potential for higher cash for the week. Demand for feeder cattle
is strong with tighter numbers. Hogs traded the higher cash from Tuesday and
showed strong technical buying.
Robin Schmahl
DTN Contributing Analyst
Cattle: Higher Futures: Mixed Live Equiv: $193.99 -0.87*
Hogs: Lower Futures: Mixed Lean Equiv: $131.75 -$0.18**
*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.
GENERAL COMMENTS:
The uptrend in cattle futures remains intact. Even though there has been
anticipation of high cash cattle trade again this week, traders many times seem
surprised when it happens resulting in a bump in futures. The reason for this
is traders are exercising caution rather than trying to anticipate higher
prices in the nearby month. Later months are anticipating higher prices
following a seasonality. There is caution due to boxed beef prices not showing
consistent strength from week to week. Wednesday, boxed beef was lower with
choice down $1.51 and select down $1.16. Limited trade took place in the North
about $2.00 higher. Southern cattle were untested. Cash traded is expected to
be active Thursday. Weekly export sales may have an influence on trading
activity.
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