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DTN Early Word Livestock Comments 11/04 06:10
Heavy Live Cattle Carcass Weights
Carcass weight for cattle has been heavy. On Oct. 17, we set a record for
the week at 994 pounds. This week, our average jumped back up to near records
at 992 pounds. With the northern areas seemingly flush with available cattle
ready for slaughter, heavy weights are only adding to the pressure on cash
trade.
Robin Schmahl
DTN Contributing Analyst
Futures Equiv
Cattle: Steady Lower Live $270.93 +$0.81 *
Hogs: Higher Higher Lean $79.20 +$0.15 **
*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:
Tuesday was another disappointing day in futures markets for live and feeder
cattle contracts. December live cattle futures are now trading below every
major moving average. The trend line support is roughly $3 below Tuesday's
settlement, so we'll see if that holds in Wednesday's trade. Cash trade is
$223.88, $2.67 below last week. Beef cutouts were higher on the day with the
largest gains seen in select. Average carcass weights were 902 pounds, up 3
pounds since last week and 13 pounds higher than last year. Strike threats
loomed over markets at Los Angeles and Long Beach ports after they decided on a
short-term extension to postpone a strike until 5 p.m. PST Wednesday afternoon.
Approximately 25% of beef exports pass through those ports, so a strike would
be a direct blow to cattle markets.
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