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DTN Early Word Livestock Comments 04/27 06:09
Uncertainty May Result in Mixed Livestock Trade
Cattle futures closed higher on Friday, but closed lower for the week. Lower
cash trade took place, but it was not a surprise, as it followed the week's
trend. Hogs closed lower with pressure on the 2026 contracts. However, futures
closed higher for the week.
Robin Schmahl
DTN Contributing Analyst
Cattle: Lower Futures: Mixed Live Equiv: $286.60 +$2.48*
Hogs: Lower Futures: Nixed Lean Equiv: $105.85 +$1.79**
*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:
Cash cattle traded lower last week, but Friday's trade did not reflect that.
Lower cash had already been factored in, allowing the market to correct into
the weekend. It is uncertain whether the strong gains in boxed beef will
provide further support today. Boxed beef prices on Friday showed choice up
$3.50 and select up $3.49. Cattle futures closed lower for the week, but it is
uncertain whether the trend will continue. High fuel prices, which are
impacting food prices, are affecting consumer buying habits. Consumers are
turning toward lower-priced beef cuts and may be turning toward other sources
of meat. The Commitment of Traders showed the fund traders trimming their long
positions by 23 contracts, reducing their net-long position in live cattle to
132,816. They were net sellers of 1,603 contracts in feeder cattle, reducing
their long position to 20,348.
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