DTN Early Word Livestock Comments 06/01 06:22
Higher Cash Anticipated
Livestock was higher across the board Wednesday as cash optimism remains
strong for cattle. Feeder cattle are in demand at auctions with higher prices
paid for tight supplies. Cash hogs were substantially higher as recently demand
seems to have increased and packers needed hogs.
DTN Contributing Analyst
Cattle: Higher Futures: Mixed Live Equiv: $224.53 +$0.25*
Hogs: Mixed Futures: Higher Lean Equiv: $92.35 +1.52**
*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 spent some time in negative territory Wednesday but gained
strength as the day progressed. New contract highs continue to unfold as
traders remain aggressive buyers. There was some very light cash activity in
Texas on Wednesday at $174, but not enough to get a good indication of what may
take place Thursday. However, there is strong optimism for higher cash to
develop, which is underpinning cattle futures. Asking prices were floated at
$175 in the South. Boxed beef prices closed mixed with choice up $0.88 and
select down $0.62. Feeder cattle are in demand as buyers remain aggressive at
auctions. Tighter supplies and continued strong beef prices are driving buyers
to write larger checks.
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