DTN Early Word Livestock Comments 09/17 06:48
Hogs Steady, Cattle Lower on Friday
Hogs were the star of the livestock complex Thursday with front-month
October leading the charge. Live cattle struggled due to lower beef prices
while feeder cattle were mixed.
DTN Contributing Analyst
Cattle: Lower Futures: Mixed Live Equiv: $231.66 -$1.67*
Hogs: Steady Futures: Higher Lean Equiv: $113.23 +$0.27**
* 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 could be at risk to fall back to the lows as cash trade Friday
most likely will be similar to what was already seen this week along with
continued weakness of beef prices. Cash cattle trade was quiet Thursday, which
pushed the majority of the business to Friday. Packers will be unwilling to pay
more than they already have, which has been steady to $1 lower than last week.
Cattle weights suggest feedlots are current, but that may not make any
difference due to futures weakness and further declines in boxed beef Thursday.
Choice cuts declined $1.82 with select cuts down $3.62. Weekly export sales
were good at 15,300 metric tons (MT), but that did not carry enough weight to
turn futures higher.
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