DTN Early Word Livestock Comments 11/30 06:08
Traders Wait for Cash
Live cattle still cannot find aggressive buying to turn the trend higher.
Traders want to see higher cash before adding premium. Hog futures continued to
struggle, but most of the long liquidation seems to be finished.
DTN Contributing Analyst
Cattle: Higher Futures: Mixed Live Equiv: $188.25 -$0.45*
Hogs: Higher Futures: Mixed Lean Equiv: $93.54 -$3.84**
*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.
No cash business took place Tuesday as packers have not yet showed interest.
They are waiting to see how many cattle are available and what feedlots are
asking. It is possible business will be delayed until Thursday due to limited
trading interest shown so far. Slaughter pace running as strong as it is will
require packers to purchase what they need. However, there is indication that
slaughter pace is beginning to slow. Boxed beef prices were mixed again Tuesday
with choice up $0.21 and select down $2.71. Feeder cattle are having a
difficult time trending higher due to the choppy corn market and the
uncertainty over demand early next year.
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