DTN Early Word Livestock Comments 03/29 06:13
Traders Look For Cash Direction
Live cattle were able to hold minor gains with traders having little to
focus on to influence trading. Feeder cattle were mixed, influenced by mixed
corn trade. Hogs were mixed with some spread trading between nearby and
deferred contracts as traders position themselves ahead of the report.
Robin Schmahl
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $208.60 +$0.20*
Hogs: Higher Futures: Mixed Lean Equiv: $87.27 -$1.22**
*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:
There was back-and-forth activity Tuesday with live cattle closing in
positive territory. Trading ranges were narrow as there was little news. No
cash trading activity took place with mixed ideas as to what that will do this
week. With boxed beef showing some strength so far this week, some believe that
may result in slightly higher cash. Others believe it will take more than that
to push packers to pay more than steady money as they have some cattle already
purchased ahead. Tuesday, boxed beef was higher with choice up $0.27 and select
up $0.64. Slaughter pace continues to hold steady. Feeder cattle were mixed
with March showing the greatest decline as it holds close to the index as the
contract closes Thursday. Demand for feeder cattle remains strong with higher
prices at auctions.
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