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DTN Early Word Livestock Comments 09/08 06:47
A Cautious Start to the Week for Livestock Markets
Most livestock contracts closed lower on Friday as traders may have
positioned themselves ahead of a longer weekend. It seems that you can never
tell what news will develop from one day to the next, much less over an
extended weekend. Hogs showed the same, but the weakness was more pronounced on
the charts.
Robin Schmahl
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $276.06 +$0.73*
Hogs: Higher Futures: Lower Lean Equiv: $99.87 +$1.74**
*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 contracts closed lower on Friday as traders may have positioned
themselves ahead of a longer weekend. It seems that you can never tell what
news will develop from one day to the next, much less over an extended weekend.
Contracts held support but didn't give traders much to get excited about. Cash
cattle may finally have reached a level that packers need to maintain, as
Southern dressed cattle averaged about $2.00 lower. Some cash sales actually
took place $1.00 higher. Northern dressed cattle averaged $1.00 lower. Boxed
beef prices were mixed, with choice down $0.73 and select up $5.15. The
Commitment of Traders report showed fund traders as net sellers of 10,878 live
cattle contracts, reducing their long position to 48,851. They were net sellers
of 450 contracts in feeder cattle, reducing their net-long position to 8,436
contracts.
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