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DTN Early Word Livestock Comments 12/04 06:15
Hog Futures May See Further Buying Interest
Both cattle and hog futures closed higher on Wednesday. Cattle continued
higher, fueled by the optimism for higher cash trade. Hogs may have found some
technical support that could provide further strength today.
Robin Schmahl
DTN Contributing Analyst
Cattle: Higher Futures: Mixed Live Equiv: $265.96 +$0.04*
Hogs: Lower Futures: Mixed Lean Equiv: $100.16 -$0.20**
*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:
The optimism for higher cash cattle trade continued to gain momentum. There
has been little indication as to the strength or weakness of cash trade.
However, the strong gains in futures should provide feedlots with the desire to
hold for higher prices. Packers have been limiting slaughter in an attempt to
improve margins. Boxed beef prices were mixed on Wednesday, with choice down
$0.91 and select up $2.34. Feeder cattle prices seemed to have found support
again, now that live cattle futures have found support. Feeder cattle prices at
auctions were higher in most categories this week as feedlots remain aggressive
while looking for cattle.
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