DTN Early Word Livestock Comments 07/07 06:04
Cash Cattle Trade Expected Today
Cattle futures redeemed themselves yesterday by regaining most of the losses
from Tuesday, but it did not provide much technical direction for traders. Cash
activity should take place today. Hog futures found the favor of buyers again
yesterday in 2022 contracts with spread trading pushing futures higher.
DTN Contributing Analyst
Cattle: Lower Futures: Mixed Live Equiv: $197.59 +$2.14*
Hogs: Steady Futures: Higher Lean Equiv: $119.47 -$2.98**
*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.
Cattle futures just had to bounce as it seemed feedlots have resolved to
hold for possibly higher cash. Traders were cautious over just how much
leverage feedlots might have this week, but it appears packers may have to bid
up to obtain the cattle they need. Boxed beef prices were significantly higher
adding to the friendly market yesterday with choice up $3.39 and select up
$3.06. Retail outlets are restocking the meat case and needed product. Cash
cattle have not yet traded this week and today will be a day of activity. There
is some anticipation that packers will step up to the plate bidding higher to
obtain the cattle they need.
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