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DTN Early Word Livestock Comments 09/29 06:02
Hog Futures May See Some Short-covering
Livestock traders could not find any reason to buy into the market
aggressively. Higher boxed beef prices were not enough to support cattle. Hog
futures closed at new contract lows as weakness permeates the market.
Robin Schmahl
DTN Contributing Analyst
Cattle: Steady Futures: Higher Live Equiv: $278.87 +$1.34*
Hogs: Higher Futures: Mixed Lean Equiv: $94.80 +$1.08**
*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:
Early anticipation is for cash cattle to trade steady again this week. It
appears that the reduced slaughter of last week, with some disruption due to
ICE in Kansas packing plants and uncertainty over further disruption, may keep
the packers cautious with purchases this week. The intent of duty-free imports
of beef is to lower ground beef prices. However, little impact on retail ground
beef prices has been realized. Market uncertainty may have more impact on beef
prices, at least at the farm level. Reduced slaughter may increase boxed beef
prices and keep retail prices high. Boxed beef prices were higher on Monday,
with choice up $1.65 and select up $2.47.
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