DTN Early Word Livestock Comments 12/03 06:14
Follow-Through Strength Expected
The livestock complex was higher Thursday with the exception of January
feeder cattle. Active cash trading as much as $3.00 higher provided the
catalyst for higher futures. Hogs were the recipients of a large increase of
cutouts values as well a supportive export sales report.
DTN Contributing Analyst
Cattle: Higher Futures: Higher Live Equiv: $203.41 +$0.61*
Hogs: Steady Futures: Higher Lean Equiv: $94.90 +$5.72**
*Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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
Cattle traders seemed to be in a wait-and-see mode until the anticipation of
higher cash was realized and that is what took place Thursday. Instead of $1.00
to $2.00 higher cash as many had expected, packers paid upwards of $3.00 higher
for both live and dressed cattle. As long as packers continue to run a brisk
slaughter pace, feedlots will be in the driver's seat. Support also stemmed
from higher boxed beef after a few days of lower prices. Choice increased $1.80
with select up $0.28. Cash business will continue Friday, but prices will be at
levels already seen. Weekly export sales were neutral Thursday at 21,600 metric
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.