| |
DTN Early Word Livestock Comments 11/09 06:04
Can Feeder Cattle Recover?
Last week was rough for livestock markets with futures falling as cash
prices have been pressured. Feeder cattle showed the first sign of life on
Friday as futures filled the September gap and climbed nearly $6 off the lows.
Only time will tell if Monday's market continues the climb.
Sarah Jungman
DTN Contributing Analyst
Futures Equiv
Cattle: Steady Lower Live $267.56 -$0.21 *
Hogs: Lower Lower Lean $77.41 +$1.65 **
*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:
Last week was a rough week for cattle markets, with live cattle futures down
$6.90 while feeder cattle futures were down $15.45. Weaker cash trade was the
biggest headline of the week with packers holding all the cards. There
currently is a large supply of market-ready cattle in the North and as they
gain more pounds, packers appear to be comfortable, and we're hearing that some
are buying into the first week of December currently. Carcass weights are a
record for this time of year, and the current backlog of slaughter ready cattle
are only adding to the bearish tone of the market. For the Commitments of
Traders report on Friday, managed money sold 6,882 of their long positions,
leaving a net long of 49,691 contracts in live cattle futures. For feeder
cattle, managed money sold 597 contracts to be net long 13,597 contracts.
For more free DTN information sent right to your email each morning - click here to sign up for DTN Snapshot.
|
|
