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DTN Early Word Livestock Comments      05/17 06:18
   Hogs May Show Further Gains

   Live cattle traded higher and remained higher into the close Monday. There
was renewed hope that packers may be a bit more aggressive this week as they
prepare for Memorial Day demand. Feeder cattle were under pressure due to the
strength of corn. Hogs had another explosive day with aggressive buying of
futures and triple-digit gains.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady      Futures: Mixed     Live Equiv:    $193.93 +$1.05*

   Hogs: Steady        Futures: Higher    Lean Equiv:    $108.97 +$0.38**

   *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:

   Live cattle spent most of the day in positive territory, closing near the
highs of the day. Even though packers have some cattle already committed for
the next few weeks, increasing slaughter rates may require them to bid steady
to higher this week in the cash market. However, traders will wait to see
confirmation of cash before becoming too excited. The higher corn prices may
have feedlots wanting to move cattle quickly rather than holding for better
prices. Boxed feed showed choice up $1.36 and select up $1.77. Feeder cattle
were under pressure due to higher corn futures. However, the losses were
confined to double digits. August feeders made a new contract low before
rebounding, limiting the loss. The Commitment of Traders showed funds as net
sellers of 8,948 live cattle contracts, bringing their net total longs to
29,949 contracts.
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