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DTN Early Word Livestock Comments 07/31 06:18
Selling in Hog Futures May Have Run Its Course
Cattle futures closed higher Thursday as some light cash cattle trade was
reported at higher prices than last week. Nearby feeder cattle spent some time
in negative territory before finding strength. Hog futures posted another
dismal day as the market correction continued.
Robin Schmahl
DTN Contributing Analyst
Cattle: Higher Futures: Mixed Live Equiv: $264.55 -$1.68*
Hogs: Lower Futures: Mixed Lean Equiv: $108.19 -$0.14**
*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 continued to rebound from their oversold technical position
Thursday. The rebound in futures gave rise to the potential for higher cash
cattle trade. Light cash activity took place on Thursday with live prices in
the North marked at $232 to $234, which is $1.00 to $4.00 higher than last
week. Dressed cattle were as much as $5.00 higher. This may carry over Friday,
as the strength in cattle futures this week may have changed the market
landscape. Various estimates of death losses continue to circulate and are
likely providing some of the support. However, the overriding bearishness is
the weakness of boxed beef. Choice boxed beef on Thursday declined $2.93, with
select down $1.08.
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