DTN Early Word Livestock Comments 09/30 06:14
Hog Futures Should Find Support
Cattle futures found support through short-covering and technical buying due
to being oversold, as well as a good weekly export sales report. Hog futures
remained in positive territory for much of Thursday but weakened into the close
as traders positioned for the Hogs & Pigs report.
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $182.94 -$0.49*
Hogs: Steady Futures: Higher Lean Equiv: $106.88 -$1.97**
*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.
The cattle complex finally showed a positive day, but not until after
futures made a lower low than Wednesday. Strong weekly export sales were
responsible for the higher opening, but contracts then made a lower low before
triggering some short-covering as traders stepped into the market. Weekly
exports sales totaled 21,500 metric tons (mt) with China the second largest
buyer. Some cash cattle traded Thursday with prices in line with the week.
Southern cattle traded steady with Northern dressed cattle $1.00 lower. Boxed
beef was mixed with choice down $1.47 and select up $0.57. October feeder
cattle are now the front-month contract. Futures bounced nicely after technical
traders bought the market. Feeder cattle auctions are not seeing higher prices
this week as more animals have become available.
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