DTN Early Word Livestock Comments 02/18 06:17
Cattle Traders May Be Nervous Over Further Cash Weakness
Cattle futures were under pressure Friday due to the weakness of cash.
Feedlots decided to hold out and carry cattle over to the next week. Hog
futures slipped lower as February went off the board and ahead of the extended
weekend.
Robin Schmahl
DTN Contributing Analyst
Cattle: Lower Futures: Mixed Live Equiv: $232.62 +$0.30*
Hogs: Lower Futures: Higher Lean Equiv: $108.19 +$0.48**
*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:
Cattle trade let loose on Friday and feedlots sold at lower prices. The
recent weakness of futures and the prospect that packers were not stepping up
made them decide to sell. Southern cattle traded $3.00 to $4.00 lower with
Northern dressed cattle trading $5.00 to $7.00 lower. Those who held out may be
under pressure to move cattle this week. Boxed beef prices closed lower with
choice down $2.70 and select down $2.70. The Commitments of Traders report
showed fund traders reducing their live cattle futures positions by 15,934
contracts to a net-long of 136,369. They added 375 contracts to feeder cattle,
bringing their net-long to 27,156.
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