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DTN Early Word Livestock Comments 08/05 06:22
8/5/2025 - 06:53:00
DTN Early Word Livestock Comments 08/05 06:22 Livestock Futures Should See Further Support Tuesday Both cattle and hog futures were higher Monday, supported by higher product values. It has been unusual recently to see both categories of boxed beef higher on the same day. Hog futures moved above technical resistance in the December and later contracts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $264.19 +$0.80* Hogs: Higher Futures: Higher Lean Equiv: $123.74 +$0.85** *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: Cattle futures may try to regain their recent losses as there has not been a change in fundamentals. It has been anticipated by many that a peak would have been reached numerous times; but there seems to be no end in sight. Cattle supplies remain tight, feedlots are confident to hold for higher prices, and consumer demand remains strong. Boxed beef prices on Monday were higher, with choice up $1.10 and select up $1.09. Packers have had two weeks of slaughter running below 550,000 head, which may support boxed beef prices. However, higher prices at the retail level could reduce demand as the calendar moves closer to the Labor Day weekend. Retailers may be cautious about the level of beef they need to have available, as some consumers may turn to other cuts of meat. Of course, that has been said repeatedly in the past, but it has not slowed the market.