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DTN Early Word Livestock Comments 09/22 06:12

22 Sep 2023
DTN Early Word Livestock Comments 09/22 06:12 Mixed Trade Ahead of Cattle on Feed Report The livestock complex was under substantial pressure Thursday with triple-digit losses in nearly all contracts. Cattle likely were under pressure from steady cash. Hogs were likely under pressure from profit-taking due to the large increase in futures Wednesday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $221.57 +$0.09* Hogs: Lower Futures: Mixed Lean Equiv: $105.86 -$0.47** *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: It seems the disappointment of cash cattle trading at steady money was not what traders wanted to see. Premium had been built into the market in the anticipation cash would again trade higher. Northern dressed cattle traded at $292 with Southern live cattle trading at $183. There was enough cash activity to likely set the stage for cash trading Friday. Futures activity may be influenced by traders positioning ahead of the Cattle on Feed report to be released at 2 p.m. CDT Friday. 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%. Weekly export sales were not exceptional at 13,700 metric tons (mt) and not enough to support the trade. Boxed beef finally showed some strength with choice up $0.67 and select up $0.32. Feeder cattle continue to remain in strong demand with higher prices paid at auctions.