DTN Early Word Livestock Comments 04/27 06:28
27 Apr 2023
DTN Early Word Livestock Comments 04/27 06:28 Hogs May See Some Follow Through Cattle futures were under pressure for a portion of Wednesday, only to find strength over time, partially in response to lower corn prices. Hogs uncovered strong support as Wednesday progressed and strong packer demand emerged, pushing cash significantly higher. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $226.88 +$1.08* Hogs: Steady Futures: Higher Lean Equiv: $85.42 -$0.04** *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: Both live and feeder cattle struggled for a while Wednesday but found some support from lower corn prices and the ongoing bullish attitude of traders. There had been some disbelief over the action of the cash market last week. Tightening cattle numbers should continue to support prices unless consumer demand begins to slow. There was some light cash trading activity Wednesday, but not enough to establish any solid levels for the week. Kansas and Texas had a few hundred head traded at $171 to $172 with dressed in Nebraska and Iowa from $281 to $285. Cash activity should increase Thursday as packers will step up to the plate to get cattle on the books. Boxed beef Wednesday was higher with choice up $1.61 and select up $0.32. Feeder cattle remain in demand with auctions continuing to show higher prices. Thursday is the last day to trade April feeder cattle. Weekly export sales will be released Thursday morning, but likely will not have much influence on the market.