DTN Early Word Livestock Comments 09/16 06:17
16 Sep 2022
DTN Early Word Livestock Comments 09/16 06:17 Livestock Futures Should Hold Gains Live cattle received a shot in the arm Thursday when cash traded steady to $1.00 higher. Traders had been anticipating stronger cash and bought more aggressively once it was seen. Hog futures defied the weakness of both cash and cutouts to close higher, influenced by good export sales. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $187.23 -$1.35* Hogs: Steady Futures: Mixed Lean Equiv: $113.62 -$1.03** *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 trading steady to $1.00 higher Thursday provided the confidence for traders to buy futures more aggressively. The fact that packers needed cattle and stepped up to the plate Thursday provided the hope that further gains might be possible. The concern is the weakness of boxed beef as prices were down again Thursday. Choice declined $1.13 with select down $0.16. Packer margins are substantially below a year ago and the three-year average, which may soon prompt packers to slow chain speed in the attempt to back up supply and increase margins. Export sales were good but not exceptional, keeping the market focused mainly on the strength of cash.