DTN Early Word Livestock Comments 10/12 06:02
US Meat Carryout Projections Higher
Friday's World Agricultural Supply and Demand Estimates (WASDE) report has
the U.S. meat supply projecting higher carryout for pork and 2027 beef.
Robin Schmahl
DTN Contributing Analyst
Cattle: Steady Futures: Higher Live Equiv: $274.52 -$0.20*
Hogs: Steady Futures: Lower Lean Equiv: $87.42 +$0.85**
*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:
Total supply of beef on Friday's World Agricultural Supply and Demand
Estimates (WASDE) report showed a 10-million-pound increase from September's
report to October for 2026 projections and a 20-million-pound decrease from the
September report. However, the total use for each year was lower, leading to an
increase in ending stocks for 2026 and unchanged in 2027 projections. Last
week, many producers were left discouraged with bids for live cattle and we
expect to see deliveries executed on futures contracts.
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