DTN Early Word Livestock Comments 08/17 06:18
Higher Cash for Cattle, Hogs Expected
Cattle rallied Tuesday on the potential for significantly higher cash while
hogs fell apart. Some support for cattle stemmed from another day of lower corn
futures but mostly from initial light trade indicating higher cash. Hogs were
the recipients of broad selling as buying interest ran out and liquidation
DTN Contributing Analyst
Cattle: Higher Futures: Higher Live Equiv: $195.39 +$0.23*
Hogs: Higher Futures: Higher Lean Equiv: $129.23 -$3.76**
*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.
Live cattle pushed to new highs for the move, keeping the uptrend solidly
intact. However, October did not close the chart gap. That may be accomplished
Wednesday with the potential for further support stemming from stronger cash
trade. There were a few cattle traded Tuesday in Nebraska at $4.00 higher on a
dressed basis with others sold at steady money with last week on a live basis.
This increases the resolve of feedlots to hold for higher prices. Packers look
like they are willing to pay more as slaughter pace is brisk and they do not
have many cattle contracted. Boxed beef prices were mixed with choice up $0.98
and select down $0.60.
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