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DTN Early Word Livestock Comments 09/21 06:20

21 Sep 2023
DTN Early Word Livestock Comments 09/21 06:20 Cattle Traders Anticipate Higher Cash Traders were impatient Wednesday and did not want to wait around for cash sales to buy into the market. Buying pushed futures higher in the anticipation of at least $1.00 higher cash. Hog futures broke through price resistance as packers became more aggressive Wednesday. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $221.48 -$1.08* Hogs: Lower Futures: Mixed Lean Equiv: $106.33 -$1.91** *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: Traders did not want to wait to see confirmation of cash trade before buying aggressively in the market. It followed a similar pattern to last week when futures pushed higher in anticipation of higher cash, which then took place. Tighter cattle supplies are the driving factor with limited influence from boxed beef prices. Boxed beef prices are very good, but the recent weakness has had no real impact on the overall market. Wednesday, boxed beef was lower with choice down $0.86 and select down $3.10. Some cash trade might develop Thursday, but more likely it will wait until Friday, as has been the pattern the past number of weeks. The upcoming Cattle on Feed report may have some influence on futures Thursday, keeping contracts from making new highs. Estimates for the report are for on-feed numbers as of Sept. 1 at 97.6% of a year ago. Placements in August are estimated at 93.6% with marketings at 94.4%.