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DTN Early Word Livestock Comments 09/12 06:19

12 Sep 2023
DTN Early Word Livestock Comments 09/12 06:19 Mixed Trade Ahead of WASDE Report It was an interesting Monday as most cattle contracts pushed to new highs. Traders are not waiting to see any indication of cash before buying aggressively. Hog futures showed strength in response to stronger cutouts, keeping the market in a sideways pattern. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $227.28 -$1.51* Hogs: Higher Futures: Higher Lean Equiv: $106.57 +$1.65** *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: After the strength of futures last week, traders were willing to extend those gains without waiting for cash trade this week. The anticipation is for steady to higher cash due to the low volume of cattle purchased last week and the likelihood of feedlots holding for higher cash due to the continued strength of futures. Higher cattle prices and steady corn prices are a good combination for increased profit. The negative aspect of Monday was the decrease of boxed beef with choice down $2.79 and select down $0.61. This may not have much influence on the market as the weakness might be temporary with choice cut prices running well above last year and the three-year average. Feeder cattle were on fire with gains of over $2.00 and no price resistance in sight. Buyers at auctions continue to remain aggressive, bidding higher for feeders. Some of the attention will be focused on the results of the WASDE report released Tuesday at 11 a.m. CDT and if it has an impact on feed prices.