DTN Early Word Livestock Comments 10/07 06:15
Another Uncertain Trading Day
Cattle traded on both sides of the market Thursday after first opening
higher. The higher opening was a little baffling due to the weekly export sales
report. Hog futures extended their gains, gapping higher on the opening due to
strong export sales.
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv $182.89 -$0.32*
Hogs: Lower Futures: Mixed Lean Equiv: $109.13 +$2.00**
* 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
Cash cattle traded higher as expected with both live and dressed cattle
$1.00 higher. Feedlots were able to hold for higher prices with packers needing
to procure the cattle required for slaughter this week with some contracted
ahead. It will be an interesting day and upcoming week as live cattle futures
have not been able to trend higher even though cash traded higher. The pressure
on the market mainly stemmed from less-than-desired weekly export sales. This
leaves export potential in question through the end of the year as the dollar
remains strong to many other currencies. Export sales totaled 16,400 metric
tons (mt). Boxed beef was mixed again with choice up $0.30 and select down
$2.23. Feeder cattle struggled even though corn futures were under pressure.
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