DTN Early Word Livestock Comments 08/08 06:14
Limited Price Movement Expected
Cattle closed higher for the week but did not show as much strength as one
would have thought given the increase of cash. Minor gains on Friday indicate
traders are likely to exercise caution to begin the week. Hog futures were
mixed with spread trading again supporting nearby months.
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $195.01 -$1.18*
Hogs: Lower Futures: Mixed Lean Equiv: $133.11 +$0.24**
*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 did not have much to go on during Friday's trade. Cash prices
did not change, leaving traders mainly watching outside markets and
anticipating what the upcoming week would bring. Packers are not anticipated to
be aggressive this week if they do not need to be. Although there is
expectation of tighter supply over time, the here and now indicates ample
supply for the market. Boxed beef closed lower Friday with choice down $1.66
and select down $1.68.
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