DTN Livestock Open: Traders Search for Further Direction

    Photo: Adam Russell, Texas A&M AgriLife Extension Service

    Cattle and hogs diverged Monday with most of the pressure put on feeder cattle. Live cattle showed little to trade on other than some spillover pressure. Hogs continued to defy the weakness of cash and cutouts.

    Cattle: Steady Futures: Lower Live Equiv: $209.66 -0.24*
    Hogs: Steady Futures: Mixed Lean Equiv: $107.79 -0.54**
    *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:

    Traders were searching for something to get excited about in live cattle, but the only thing they found was pressure from the weakness of feeder cattle. Feeder cattle broke out of the sideways trading range that had developed over more than a week to the downside with a vengeance. The pressure was both technical and fundamental as higher placements are expected.

    Cash cattle trade was quiet Thursday as expected and is likely to remain that way again Tuesday. Boxed beef showed minor losses with choice down $0.15 and select down $0.81. The Commitment of Traders report showed funds as net buyers of 10,312 contracts increasing their net-long positions to 35,469 contracts.

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