DTN Livestock Open: Export Sales May Set Direction

    Photo: Texas AgriLife Extension

    The cattle complex uncovered some buying interest Thursday from stronger boxed beef prices as well as strong financial markets. Hogs were not the recipients of any spillover strength closing lower. December hogs are now the lead month.

    Cattle: Steady Futures: Mixed Live Equiv: $209.96 +0.57*
    Hogs: Steady Futures: Higher Lean Equiv: $113.14 +1.21**
    *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

    GENERAL COMMENTS:

    Live cattle bounced Thursday, generally regaining the losses of the previous two days. Cash cattle trade was rather quiet with feedlots holding out for higher cash even though cattle were sold at steady cash on Wednesday. The resolve of both packers and feedlots will be tested Friday with further activity expected to develop as business will need to be accomplished.

    A strong stock market caused traders to think maybe the economy will remain strong, improving disposable income, which may result in better beef demand. Boxed beef showed strength in both categories with choice cuts up $0.30 and select cuts up $1.98. This could indicate beef prices may have found a bottom. Weekly export sales may set some price direction.

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