DTN Early Word Livestock Comments 10/03 06:15
Outside Markets Influence Trading Activity
Live cattle futures fell back Friday to close at the low end of the range
for the week. Feeder cattle took a bath, closing at a new low for the recent
downtrend. Hog futures were able to close higher except for front-month October
as it could not shake the weakness of cash.
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $181.86 -$1.08*
Hogs: Steady Futures: Higher Lean Equiv: $105.43 -$1.45**
*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.
Cattle closed lower to end the quarter, succumbing to the pressures of the
lower stock market and a bullish quarterly stocks report for corn. Cash cattle
traded earlier in the week with no further change seen to close the week. The
negative implications of the Cattle on Feed report the week before, the
weakness of the stock market, and the bullish quarterly stocks report for corn
impacted the market, moving prices to the lower end of the trading range
established for the week in the October live cattle contract. With the concern
over demand due to economic concerns and the continued weakness of boxed beef,
cash cattle are not expected to see much, if any, upside this week. Boxed beef
was mixed, the choice down $2.33 and select up $0.35. Feeder cattle saw
substantial pressure closely related to the bullish Quarterly Grain Stocks
report. October futures made a new low for the current trend, keeping the
market in a solid downtrend.
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