DTN Early Word Opening Livestock 04/25 06:19
Hog Traders Look for Additional China Sales
Traders will closely focus on the weekly Export Sales report Thursday,
looking for any additional China sales. This could help give additional
direction to the complex.
By Rick Kment
Cattle: Steady to $1 Higher Futures: Lower Live Equiv: $152.55 -0.64*
Hogs: Steady to $1 Higher Futures: Mixed Lean Equiv: $ 91.87 -1.94**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle trade started to develop in the South Wednesday, with
light-to-moderate trade in Kansas and Texas at $125 to $127 per cwt. This is
generally steady to $1 per cwt higher than last week's levels. The midweek
trade may be enough cattle sold for the week in the South, but if not, it will
likely set the tone of the market for the week. Interest in the North was
generally quiet, and will focus on redeveloping bids the next couple of days.
With Wednesday trade in the South becoming consistent the last few weeks, it
may change the overall weekly flow of the market. Although at this point, any
Southern business has been unable to move Northern trade from end of the week
activity. Futures trade posted aggressive triple-digit losses following a
technical shift lower that developed midweek. The inability to hold short-term
support levels of $120 per cwt in June futures created additional liquidation.
Weakness remains evident through live cattle and feeder cattle trade, allowing
for additional follow-through pressure Thursday morning.
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