DTN Early Word Livestock Comments 02/08 06:05
WASDE Report May Influence Direction
Live cattle spent some time in positive territory Tuesday but could not hold
those slight gains. Feeder cattle followed a similar pattern, unable to
penetrate technical resistance. Hogs were very negative for a time but managed
to close in positive territory.
DTN Contributing Analyst
Cattle: Higher Futures: Mixed Live Equiv: $199.55 +$0.61*
Hogs: Higher Futures: Mixed Lean Equiv: $86.33 -$3.06**
*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.
So far, the cattle market may be on track to follow a similar pattern as the
past two weeks. Cash has not traded with little indication of how strong the
market may be. There have been some asking prices established in the South but
nothing in the North. Packers have shown no bids. The focus Wednesday will be
on the World Agricultural Supply and Demand report and its impact on feed
prices. Boxed beef prices were higher Tuesday with choice up $0.15 and select
up $3.61. Slaughter pace is holding about steady as packers want to increase
their margins. Live cattle futures either made new contract highs or matched
the highs on continued support. Feeder cattle found support from slower corn
prices but were unable to move above technical resistance at the highs
established Jan. 4.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.