DTN Early Word Livestock Comments 09/16 06:32
Livestock Futures Swim Against the Current
The rebound of cattle was short-lived as selling pressure on feeder cattle
pulled live cattle slightly lower. Steady to lower cash also had an impact.
Hogs saw spread trading with October the beneficiary of buying, unsupported by
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $233.33 -$2.92*
Hogs: Lower Futures: Mixed Lean Equiv: $112.96 +$0.50**
* 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 futures initially showed some follow-though from Tuesday, but
such was not the case for feeder cattle. Live cattle futures came under
pressure due to steady-to-lower cash trade. Cash trade in the South was steady
with last week while trade in the North was generally $1 lower. This, along
with boxed beef prices continuing to fall, does not bode well for a significant
rebound of futures. Boxed beef was down sharply with choice cuts down $3.07 and
select cuts down $6.73. Weekly export sales will be released Thursday morning,
and it will be interesting to see if China is a significant buyer. The
resumption of beef trade between Brazil and China was expected soon, but that
has been delayed due to continued disagreements. China banned trade with Brazil
earlier due to two cases of mad cow disease.
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