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DTN Early Word Livestock Comments 09/13 06:28

13 Sep 2023
DTN Early Word Livestock Comments 09/13 06:28 Hog Futures May Trend Higher New contract highs were seen in feeder cattle and later live cattle contracts before futures slipped back from the highs into the close Tuesday. Hog futures finally broke out above the recent sideways trading range as stronger cutouts received the attention of traders. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $225.89 -$1.39* Hogs: Higher Futures: Mixed Lean Equiv: $108.32 +$1.75** *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: Cattle futures slowed their gains Tuesday, but later live cattle futures and all feeder cattle futures did make new contract highs at one point during the day. Without cash cattle trade providing any direction, traders turned their attention to the WASDE report for something to trade on. The slowing of beef production estimated in the report was not a surprise as tighter cattle numbers and higher prices will impact beef production. What was interesting is USDA left the average price estimate for steers unchanged from August at $178.50 and the estimate for 2024 unchanged at $186.00. Boxed beef was lower again Tuesday with choice down $2.08 and select down $1.66. Could it be prices have met consumer price resistance? Grain prices were under pressure as USDA indicated an increase of corn production compared to the August report. Even though per acre yield was reduced by 1.3 bushels, harvested acres were increased, making up the difference and then some. However, this had little impact on feeder cattle futures.