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DTN Early Word Livestock Comments 04/24 06:06
Agriculture Secretary Rollins Cancels Trip to Douglas, Arizona
Cash cattle traded lower on Thursday, with the trend likely to continue
today. The minor strength may have been tied to the Ag Secretary's cancellation
of her visit to Douglas, Arizona. Hog futures were higher through February
following the pattern of a three-day bounce.
Robin Schmahl
DTN Contributing Analyst
Cattle: Lower Futures: Mixed Live Equiv: $284.12 -$0.50*
Hogs: Higher Futures: Mixed Lean Equiv: $104.06 -$0.73**
*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:
Cash trade and boxed beef did not provide support to the market on Thursday.
Northern dressed cattle and Southern live cattle both traded $2.00 lower, with
that trend expected to continue today. Boxed beef declined, with choice down
$0.69 and select down $0.75. The strength may have stemmed from some
profit-taking after six consecutive days of weakness. The short covering may
also have been from the news that Agriculture Secretary Rollins canceled her
trip to Douglas, Arizona, amid ongoing border biosecurity questions. There has
been no information about rescheduling her trip. Whether further aggressive
buying will continue today is uncertain. The market may have been corrected in
line with the fundamentals.
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