DTN Early Word Livestock Comments 09/26 06:15
26 Sep 2023
DTN Early Word Livestock Comments 09/26 06:15 Hogs and Pigs Report Estimates Cattle struggled most of Monday with some contracts closing slightly higher at the end. The Cattle on Feed report did not provide enough support to push futures higher, but it did provide support. Hog futures spent time on both sides of the market but closed higher supported by stronger cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $221.96 -$0.91* Hogs: Higher Futures: Higher Lean Equiv: $105.94 +$1.60** *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 traded the neutral to slightly negative Cattle on Feed report Monday, resulting in mixed live cattle and lower feeder cattle futures. The report was positive compared to the previous year with tighter cattle numbers, but slightly negative due to actual numbers compared to estimates. The numbers compared to a year ago are what is more important, longer term. Packers may not be too aggressive this week as they bought quite a few last week, but they will need to try and keep ahead. No less than steady cash is expected. Boxed beef prices were mixed with choice down $1.85 and select up $0.02. The storage report showed total beef supply at 421.6 million pounds, up 11.2 million pounds from July, but 18% below a year ago.