News & Resources

DTN Early Word Livestock Comments 06/24 06:17

24 Jun 2022
DTN Early Word Livestock Comments 06/24 06:17 Mixed Trading Activity Ahead of Report It was a weird Thursday for the cattle complex with live contracts under pressure while feeders posted strong gains. Higher cash prices in the North failed to generate buying interest. Hogs took a beating as slower slaughter and demand concerns increased trader anxiety. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $196.36 -$1.19* Hogs: Lower Futures: Higher Lean Equiv: $117.81 -$1.38** *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. GENERAL COMMENTS: Live cattle just could not generate sufficient buyer interest to pull futures into positive territory Thursday. It seemed the goal was to close the chart gap left from last week, but once that was accomplished selling continued as stops were triggered. Friday, traders are staring at the Cattle on Feed report that will be released after the close. This may keep trading activity subdued prior to the weekend. June live cattle have one more week remaining of trade, and it is confusing indeed that futures are below cash. This week has been interesting in the cash market as Southern cattle have traded steady to as much as $2.00 lower than the previous week. However, Northern dressed cattle increased $2.00 to $4.00 Thursday as packers stepped up to the plate. Boxed beef was lower again with choice down $1.91 and select down $1.05. Beef in cold storage during the month of May totaled 519.8 million pounds, up 25% from a year ago.