DTN Early Word Livestock Comments 09/19 06:10
Livestock Traders Search for Fundamental Support
The live cattle market drifted in a narrow range with futures closing mixed.
Feeder cattle followed the lead of the live cattle with traders having little
to latch onto. Hogs showed similar activity with contracts trading in a limited
range finding little fundamental support.
Robin Schmahl
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $221.52 -$1.77*
Hogs: Lower Futures: Mixed Lean Equiv: $100.50 -$0.59**
*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 showed limited price movement on Wednesday as cash cattle
trade had not developed, and traders' attentions began to look ahead to the
Cattle on Feed report to be released on Friday. The average estimate of cattle
on feed on September 1 is 100.7% of a year ago. Placements in August are
estimated at 98.5%. Cattle marketed in August are estimated at 96.5%. The
report has been notorious for actual placement being higher than estimated. Dry
weather has been prevalent in cattle country over the past month which may
result in higher placements into feedlots due to pasture conditions and the
delay in planting and growth of the wheat crop. There have been no cattle
traded so far this week with trade not likely to take place today. Boxed beef
prices suffered with choice closing down $2.53 and select down $2.57.
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