DTN Early Word Livestock Comments 05/26 06:15
Traders May Take Profits Ahead of Weekend
Cattle were able to post gains for Thursday with the nearby-June contract
showing the greatest strength. Good export sales may have provided some
support. Hogs fell apart and are still unable to find support as packers have
been lethargic this week.
DTN Contributing Analyst
Cattle: Steady Futures: Mixed Live Equiv: $221.12 +$0.97*
Hogs: Lower Futures: Higher Lean Equiv: $88.22 +0.32**
*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.
Cattle futures pushed to new contract highs across the board, except for
August, which fell just shy of the mid-April high. That may be accomplished
Friday. However, with a three-day weekend coming up, trade may be two-sided
today as some liquidation may take place since, many times, traders like to
lighten up their positions ahead of an extended weekend. Higher cash this week
provided the support the market needed to continue the trend higher. Boxed beef
prices were higher with choice up $1.64 and select up $0.75. Weekly export
sales totaled 18,300 metric tons (mt), up 5% from the previous week, providing
some of the support seen Thursday. Some cash business will be conducted Friday,
but it will be in line with trade so far this week. August feeder cattle are
now the lead month. Futures were on a roller coaster Thursday, posting
significant losses at some point, only to close slightly higher. The overnight
strength of corn and extended weekend positioning may put some pressure on
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