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DTN Early Word Livestock Comments 04/09 06:19
Hog Futures Need to Find Support to Avoid Further Liquidation
Cattle futures maintained support on Wednesday with feeder cattle outpacing
live cattle. However, the bullish attitude for high cash has tempered. Hog
futures reversed course and eliminated the strong gains from earlier this week.
Robin Schmahl
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $282.03 -$2.38*
Hogs: Steady Futures: Mixed Lean Equiv: $102.99 -$0.91**
*Based on the formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. The 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:
Boxed beef prices have shown significant weakness over the past week, which
has changed traders' attitudes toward the potential of cash trade. Rather than
the expectation of higher cash, it is now expected to be steady or lower. Boxed
beef prices on Wednesday showed choice down $3.08 and select down $4.06.
Feedlots will hold for more, but packer margins have dwindled. They have some
cattle purchased ahead and may be content to purchase fewer cattle rather than
pay more money. Feeder cattle remain in strong demand as pastures are growing
and ranchers want to take advantage of it.
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