Printable Page Market News   Return to Menu - Page 2 3 4 5 6 7 8 9 10
DTN Early Word Opening Livestock       02/28 06:33
   Market Weakness Continues

   Continued pressure is likely Friday following the technical weakness
developing in commodity markets as well as livestock trade. Moderate attempts
of price support are expected through the day as traders try to cover short
positions at the end of the week and month.

By Rick Kment
DTN Analyst

Cattle: Steady to Lower  Futures: Mixed   Live Equiv $136.93 -0.02*
Hogs:   Steady           Futures: Mixed   Lean Equiv $ 69.24 -0.20**

*  based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue


   Thursday cash cattle trade posted a few scattered trades at steady-to-lower
money than was seen earlier in the week. For the most part, cash business
wrapped up, but some clean-up trade trickled into the market over the last
couple of days. It is likely that there may not be bids on Friday, but given
the market freefall through the week, it is also possible that packers may
offer a few low-ball bids in the case that some feeders with cattle still on
showlists will bite rather than waiting until next week. The weaker tone of
cash markets will be huge going into early March. Fundamental supply levels
have had little to do with cash market prices through the last week with the
focus based on the plummeting of futures trade and concerns about further
weakness in the near future. The fact that cattle futures pulled away from
early limit losses Thursday is a good sign that may bring a sense of stability
at the end of the week. But live cattle market trade once again will likely be
at the whims of outside market direction. With the Dow Jones Index falling
1,190 points at the end of the day Thursday, there still seems to be some
strong underlying concerns that further general market pressure may develop
before traders back away from the panic button. Friday slaughter is expected
near 121,000 head.
DTN offers additional daily information available free through DTN Snapshot – sign up today.
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN