DTN Early Word Livestock Comments 11/28 06:11
Early Strength Anticipated
Traders will be back in full force Monday and likely willing to buy futures.
Trading activity last week did not reflect higher cash with the anticipation of
gains again this week. Hogs drifted, finding little interest in trading; but
lower cutouts again on Friday will make it difficult to find aggressive buying.
DTN Contributing Analyst
Cattle: Higher Futures: Higher Live Equiv: $188.64 -$0.14*
Hogs: Steady Futures: Mixed Lean Equiv: $95.49 -$1.72**
*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.
Thinner trade Friday left cattle futures in a narrow range and closing under
slight pressure. Higher corn prices gave something for traders to use for
direction. Weekly exports sales were good at 12,900 metric tons (mt) providing
some support. However, mixed boxed beef prices left the market a bit lackluster
with choice down $0.73 and select up $1.04. It is difficult to determine how
trading will develop after the holiday weekend, but with limited reaction to
higher cash last week, it is likely traders will be interested in buying
Monday. Feedlots will look for higher cash this week after the victory last
week due to packers becoming more aggressive than initially expected.
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