DTN Early Word Livestock Comments 06/27 06:08
A Mixed Bag of Trading Activity Todayt
Live cattle could not find any direction Friday as traders waited for the
release of the Cattle on Feed report. Feeder cattle were under pressure from
the rebound of corn. Hogs regained a good portion of what was lost on Thursday
as cutouts again showed promise.
DTN Contributing Analyst
Cattle: Lower Futures: Mixed Live Equiv: $196.56 +$0.20*
Hogs: Higher Futures: Higher Lean Equiv: $120.06 +$2.25**
*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.
Traders were uncertain over the numbers that would be released on the Cattle
on Feed report after the close on Friday. After all, the previous two reports
showed some bearish surprises. However, those fears were unfounded this time as
the report was neutral to slightly friendly this time around. On feed numbers
were slightly below the trade estimate at 101%. Placements were 98% compared to
the average trade estimate of 99.8% and marketings for the month of May were
102% of a year ago compared to the estimate of 103%. This report may not be
much of a market mover but may at least provide some support. Traders will
focus their attention on the potential for cash this week. It is difficult to
say how aggressive packers will need to be this week. Strong cash the past two
weeks could suggest cash cattle at no less than steady prices with last week.
Boxed beef was higher with choice up $0.32 and select up $0.08. Lower corn
futures overnight should provide support for feeder cattle with the potential
to take back the losses of Friday.