DTN Early Word Livestock Comments 05/27 06:21
Mixed Trading Activity Anticipated
Live cattle finished a ho-hum Thursday with futures moving in a tight range
throughout the day. Cash prices were set for the week and export sales provided
no support. Hogs turned higher after initially trading lower, supported by
strong export sales and higher cutouts.
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $195.57 +$0.03*
Hogs: Steady Futures: Mixed Lean Equiv: $115.75 +$1.06**
*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
Live cattle were not impacted by lower corn prices as lower cash this week
trumped any positive other news. Futures are not expected to see much
volatility Friday as traders look to a three-day weekend. Export sales did not
support the market as they were 14% below the previous week. Inflation is
taking its toll on demand at a time when more cattle are available to the
market. Boxed beef prices were higher with choice up $1.04 and select up $0.37.
Cash business is basically finished for the week, providing nothing for traders
to focus on Friday other than a longer weekend. Feeder cattle could not rally
on lower corn prices, which has been the pattern recently. There seems to be an
overriding bearishness to the market. The August contract takes over as the