DTN Early Word Livestock Comments 03/23 06:04
Support Remains Elusive
The livestock complex had its head under water Wednesday with no positive
futures prices across the board. Cash cattle traded mixed. Hogs fell
significantly as the path of least resistance is down without fundamental
support.
Robin Schmahl
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $209.00 +$0.29*
Hogs: Lower Futures: Lower Lean Equiv: $87.14-$1.66**
*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.
GENERAL COMMENTS:
Cash cattle traded Thursday rather than holding out to the end of the week.
Volume was light but it may have been sufficient to set the stage for the rest
of the week. Trade in the South was $1.00 lower than last week while dressed
trade in the North was steady to $1.00 higher. Live cattle futures made a new
low again Wednesday, but recovered significantly as futures carry a discount to
cash. Boxed beef continues to struggle as choice gained $1.38 while select
declined $1.73. Feeder cattle showed a little more pressure than live cattle
with traders uncertain of buyer interest at auctions with the recent weakness
of live cattle.
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