DTN Early Word Livestock Comments 07/26 06:21
Traders Wait For Northern Dressed Trade Friday
Cattle futures found buying interest Thursday as cash cattle traded $2.00
higher in the South. Feedlots won the victory, holding out until packers had to
raise bids to get cattle on the books. Hog futures took a breather as packers
held back on aggressive buying due to purchasing sufficient supply earlier in
the week.
Robin Schmahl
DTN Contributing Analyst
Cattle: Higher Futures: Mixed Live Equiv: $228.30 +$0.07*
Hogs: Lower Futures: Higher Lean Equiv: $111.90 +$1.19**
*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:
Traders were surprised at Southern cattle trading $2.00 higher Thursday. The
consensus had been that cash would be no better than steady this week. The
weakness of boxed beef again this week and some cattle that were already
purchased ahead did not impact cash business Thursday. Northern dressed trade
will be the key to whether live cattle futures will see further strength
Friday. Futures have already adjusted to the higher cash. Weekly export sales
of 13,400 metric tons (mt) were lower than the previous week. The June Cold
Storage report did not show any large change in inventory, leaving the report
neutral to the market. Boxed beef prices were mixed with choice down $0.22 and
select up $1.15. Feeder cattle followed the lead of live cattle but without
much conviction. Feeder cattle auction prices have been variable.
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