DTN Early Word Livestock Comments 12/07 06:54
Traders Uncertain of Price Support
Cattle futures completely fell apart Wednesday. Support remains elusive and
any increase is now viewed as a selling opportunity. Hogs held well with prices
mixed into the close. Lower cutouts may influence trade Thursday.
DTN Contributing Analyst
Cattle: Lower Futures: Higher Live Equiv: $210.51 -$1.38*
Hogs: Lower Futures: Lower Lean Equiv: $ 90.65 -$1.47**
*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.
Cattle futures posted a large decline as the end of Wednesday's trading drew
near. Bullish traders seem to just throw in the towel, resulting in live cattle
futures moving to the lowest level since January with feeder cattle again
falling to new contract lows. Buyers are being run over anytime they step in
and bottom pick the market. A technically oversold market is meaningless in
this environment. Not much help came from cash or boxed beef. Cash cattle
continued to trade at $3 lower in the South and $4.00 lower in the North. The
market now has a steeper discount to cash, which shows an unfriendly market
sentiment. Boxed beef prices were mixed with choice down $3.19 while select
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