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DTN Early Word Livestock Comments 11/12 06:18
Strong Pork Demand Pushes Prices Higher
Cattle traded on both sides of unchanged Monday managing a slightly higher
close. Feeder cattle fared better, trading in line with live cattle. Hog
futures found more to be positive over with April through October contracts
closing at new highs.
Robin Schmahl
DTN Contributing Analyst
Cattle: Lower Futures: Mixed Live Equiv: $222.80 +$0.70*
Hogs: Higher Futures: Mixed Lean Equiv: $107.37 -$0.92**
Based on the formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. The 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 closed higher Monday but are struggling to gain solid
footing. It was positive to see higher boxed beef with choice up $0.28 and
select up $2.65. This pattern was seen last week, only to see boxed beef prices
resume weakness as time progressed. A similar pattern could be seen this week.
Futures need to find support soon or the market could see another liquidation
phase. Cattle supplies have not suddenly increased but demand has slowed for
the time being. There is no slowing down in demand for feeder cattle as
available supplies are tighter and the outlook for cattle prices remains
positive.
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