DTN Early Word Livestock Comments 09/28 06:20
Price Support Remains Elusive
Pressure continued Tuesday in the livestock complex with hogs feeling the
brunt of it. Cash cattle traded steady with last week, setting the tone for the
rest of the week. Packers paid up for hogs Tuesday, but that did not impact
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $183.45 -$1.05*
Hogs: Lower Futures: Higher Lean Equiv: $106.78 -$2.76**
*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.
Selling again dominated the livestock complex Tuesday. Live cattle showed
weakness as light activity in the cash market showed cattle trading steady with
last week and has likely set the tone for the week. Packers had some cattle
purchased ahead and the concern over ongoing demand hangs over the market.
Boxed beef prices remain lackluster with choice up $0.59 and select down $2.14.
Slaughter pace continues to remain strong, but packers are finding little
difficulty obtain supply to satisfy the need. Feeder cattle continued its
weakness despite what corn price is doing. Technical selling has gripped the
market and has not let go, moving futures down to the levels last seen in June.
Thursday is the last trading day for September feeders.
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