DTN Early Word Livestock Comments 10/08 06:07
Technicals Still Supportive for Cattle
The October fed cattle contract remains above the nine-day moving averages,
while lean hog futures had a setback and pork cutouts were also lower despite
strong slaughter numbers.
Robin Schmahl
DTN Contributing Analyst
Cattle: Lower Futures: Mixed Live Equiv: $275.63 -$2.08*
Hogs: Lower Futures: Lower Lean Equiv: $88.64 -$2.13**
*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 October fed cattle contract remains above the nine-day moving average as
well as the 20-day moving average. From a technical perspective, this is
supportive for cattle moving forward. Feeder cattle did pull back Wednesday but
that is to be expected after Tuesday's sharp rally. Choice and select cuts fell
Wednesday with choice down $3.31 and select cutouts down $2.13. Harvest is
finally underway in many of the wet regions across the country bringing relief
for the feedlots struggling to find feed to purchase. On the other side, many
cow-calf growers have delayed weaning from the hassle of muddy lots and the
availability of still-growing, green pastures with all the rain in September.
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