DTN Early Word Livestock Comments 09/29 06:20
Demand Concerns Continue to Pressure Livestock Contracts
The only green on the screen Wednesday was the October lean hog contract.
The rest of the livestock complex was again under pressure as liquidation
continued. Lingering pressure continued on demand concerns.
DTN Contributing Analyst
Cattle: Steady Futures: Higher Live Equiv: $183.43 -$0.86*
Hogs: Lower Futures: Higher Lean Equiv: $108.85 +$1.76**
*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.
Live cattle traded Wednesday with prices ranging from steady to $1.00 lower.
Feedlots saw the weakness in futures and the potential for lower prices and
decided to move cattle and take the best they could get. The strong U.S. dollar
may have some impact on international demand, which may be seen on the weekly
export sales report Thursday morning. Slaughter continues to remain strong,
which requires more cattle to maintain the pace. However, there is concern that
pace may slow if demand slows due to higher food and energy prices. Boxed beef
closed lower with choice down $0.88 and select down $2.00.
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