DTN Early Word Livestock Comments 09/29 06:22
Futures May See Selling Pressure
Traders decided the retracement of cattle futures was sufficient to correct
an overbought market and decided to buy the market based on continued tight
supplies. Cash trade did not support the strength. Hogs defied fundamental
gravity, rebounding to the highest close in a week Thursday. Traders did not
wait for the results of the Hogs & Pigs report.
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $221.18 +$0.05*
Hogs: Lower Futures: Lower Lean Equiv: $104.00 -$0.84**
*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 rebounded nicely despite the direction of cash and boxed beef
this week. Cash trade did not change Thursday with Southern cattle trading at
steady money with last week and Northern dressed cattle trading as much as
$2.00 lower. Traders did not seem to care and took advantage of the recent
weakness to buy back into the market for the long term as cattle numbers remain
tight. Boxed beef prices were mixed with choice up $0.56 and select down $1.07.
Beef prices have been struggling during the week. Weekly export sales were
positive at 17,700 metric tons (mt), up 29% from last week, as international
buyers have not backed away.
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