DTN Early Word Livestock Comments 08/06 06:16
Cattle Futures Trend Higher
Traders are fighting to keep the trend higher for cattle futures. Boxed beef
is not fully supporting the market, but demand may improve. Hog futures took it
on the chin on Wednesday with traders disappointed with the market's inability
to find consistent support.
Robin Schmahl
DTN Contributing Analyst
Cattle: Higher Futures: Higher Live Equiv: $269.36 -$0.49*
Hogs: Lower Futures: Mixed Lean Equiv: $107.74 +$1.22**
*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:
Cattle futures turned higher on Wednesday, keeping the uptrend intact. The
seasonal lows for beef demand may be passed with traders feeling optimistic
over further upside price potential. Boxed beef prices have not turned to move
consistently higher but show signs of support. Choice boxed beef declined $1.68
while select increased $1.56. Some light cash cattle traded in the North with
dressed prices $3 higher. This likely set the stage for the rest of the week.
Feedlots will retain confidence that they can receive higher prices and will
hold for them. The various events that have happened and are currently taking
place indicate that cattle prices may regain much of what had been lost. The
cattle herd may not rebuild anytime soon. The drought and wildfires are moving
cattle to feedlots and slaughter rather than retaining and rebuilding.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot.
|
