DTN Early Word Livestock Comments 12/02 06:21
Markets May Consolidate
The cattle complex regained some ground but not as much as one would have
anticipated given the resolve of feedlots to hold out for higher cash this
week. Hogs were higher in nearby months as a result of cash strength.
DTN Contributing Analyst
Cattle: Higher Futures: Higher Live Equiv: $202.80 -$1.22*
Hogs: Steady Futures: Higher Lean Equiv: $89.18 -$4.33**
*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 gained back some of their losses Wednesday but have a long way to go
before prices regain the losses of the past week. Traders anticipate feedlots
might be able to command a higher price for their cattle this week, but not to
the extent of the increase last week. So far, there have been a few cattle
traded about steady with last week, but that has not been a solid indicator for
the rest of the week. Packers continued to hold their bids at Tuesday's level
with limited interest shown by feedlots. Business is expected to be more active
Thursday with packers likely forced to pay higher again for cattle. There is
concern over continued weakness of boxed beef with choice down $1.46 and select
down $2.32. Weekly export sales will be released Thursday morning.
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