DTN Early Word Livestock Comments 08/15 06:19
Lower Corn to Support Feeders
Livestock futures weakened into the close of last week with little more to
generate trading interest. Cash cattle traded higher for the week and limited
business left to accomplish. Higher corn price put pressure on feeders. August
hogs went off the board with October showing some spread pressure.
DTN Contributing Analyst
Cattle: Higher Futures: Mixed Live Equiv: $194.59 +$0.58*
Hogs: Lower Futures: Mixed Lean Equiv: $129.91 -$1.48**
*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 had a strong week as slaughter was brisk and packers were aggressive.
Cash cattle traded from $2.00 to $5.00 higher, depending on the area, adding to
the developing bullishness of the market. Even though futures settled back on
Friday, the uptrend is intact. Demand remains strong with Labor Day weekend
three weeks away. Boxed beef was higher on Friday with choice up $0.27 and
select up $2.13. Lower corn futures overnight should provide support to feeder
cattle, which could spill over to the live cattle. USDA did estimate higher
beef production this year, compared to their previous estimate, increasing
production by 68 million pounds while at the same time increasing the average
price by $0.80 to $142.10.