DTN Early Word Livestock Comments 02/11 06:16
Feedlots Seem More Anxious To Sell
Cattle futures rebounded Monday because contracts were oversold relative to
cash. Liquidation can move the market more than it should and the price needs
to correct. Hogs showed pressure during the day, but were able to close mixed.
Robin Schmahl
DTN Contributing Analyst
Cattle: Lower Futures: Higher Live Equiv: $237.86 +$1.02*
Hogs: Higher Futures: Higher Lean Equiv: $105.27 +$2.62**
*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:
The anticipation that feedlots may be more anxious to move cattle now that
higher trend for cash may have ceased may come to fruition. Showlists are
higher, indicating a greater desire to sell cattle. No bids or offers were
posted Monday, leaving traders guessing about price direction. Boxed beef
prices were higher with choice up $1.63 and select up $1.02. Even though cattle
futures bounced Monday, the downtrend is still intact. Traders may be cautious
about buying into the market aggressively until they see cash trade develop.
Feeder cattle bounced but prices in the country were lower last week and
remained that way Monday.
For more free DTN information sent right to your email each morning - click here to sign up for DTN Snapshot.
|