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DTN Early Word Livestock Comments 10/28 06:11

28 Oct 2022
DTN Early Word Livestock Comments 10/28 06:11 Hog Futures May Show Further Weakness Cash cattle traded higher as expected Thursday with prices showing more strength than anticipated as some cattle traded as much as $5.00 higher. Hog futures let loose Thursday as traders decided it was time to liquidate long positions and bank the profits. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $192.66 +0.67* Hogs: Lower Futures: Lower Lean Equiv: $106.23 +0.56** *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: Packers paid up to purchase cattle with a wide range of prices. Southern cattle traded around $2.00 higher while Northern cattle traded as much as $5.00 higher. With boxed beef prices trending higher due to strong demand, packers cannot afford to sit back. Lower cattle prices are just not in the cards at the present time. Strong slaughter pace needs to be maintained, even though market-ready cattle supplies are light. Higher boxed beef prices are making it a bit easier for packers to pay more and yet still maintain a profitable margin. Boxed beef showed choice up $1.63 with select up $3.31. Weekly export sales were neutral at 14,100 metric tons (mt) which did not provide support to the market. Traders did not react to the higher cash as it was already factored into the market with trading activity taking place on both sides of unchanged.