DTN Early Word Livestock Comments 03/19 06:15
Livestock Traders May Take a Wait-and-See Attitude
Cattle futures were mixed, with live cattle slightly higher while feeder
cattle declined. Traders may have moved to a wait-and-see attitude as the
movement of cash is contemplated. Hog futures were mixed with little for
traders to be excited about.
Robin Schmahl
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $294.50 -$0.89*
Hogs: Lower Futures: Mixed Lean Equiv: $104.78 -$1.07**
*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:
Live cattle futures showed limited volatility. Futures managed to post minor
gains into the close. Traders seem to have moved into a wait-and-see attitude
as cash cattle have not traded, and the Cattle on Feed report will be released
Friday after the close. Generally, cash cattle are not traded until late on
Friday when the report is released. This may result in subdued trading
volatility today. The general feeling is for cash cattle to trade steady this
week. Boxed beef prices closed lower after a steady increase for many days.
Choice boxed beef declined $1.56 and select declined $0.55. The average trade
estimates for the Cattle on Feed report are on-feed numbers as of March 1 at
99.3%, placements in February at 100.3%, and marketings at 92.4%. There is a
wide range of estimates for placements. The range of estimates is from 96.3% to
105.0%. Analysts are trying to determine the impact on placements due to the
Mexico border remaining closed and the increase in feeder cattle sales during
February.
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