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DTN Early Word Livestock Comments 03/27 06:10
Steady Cash Cattle Trade May Again Develop This Week
Livestock futures were higher as traders found little reason to be bearish
during the day. However, the final print of boxed beef and pork cutouts was not
supportive and may influence the markets today.
Robin Schmahl
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $287.80 -$1.72*
Hogs: Higher Futures: Mixed Lean Equiv: $101.31 -$1.05**
*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:
Cattle futures regained the losses of Wednesday but had little else to show
for it. Another day of weakness for boxed beef may have a negative influence on
the market today. Boxed beef prices declined in both categories, with choice
down $1.84 and select down $3.83. Fortunately, some light dressed cattle trade
took place in the North at even money with last week. This may have set the
stage for cash trade today for dressed cattle, but the jury is still out for
live prices. Packers may not pay more for live cattle due to the recent decline
of boxed beef. The March feeder cattle contract ceased trading on Thursday,
with the April contract moving to the lead month, and is holding over an $8.00
discount to the index.
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