Greater Ozarks MFA Agri Services – Ozark, Ash Grove & Marshfield.
CLICK - MFA CONNECT

DTN Early Word Livestock Comments      08/17 06:26
   Support May Remain Elusive in Livestock Markets

   The close on Friday ended a tough week for cattle futures. The bombardment
of expected negative news and lower cash trade pressured futures. Hog futures
closed in negative territory with contracts closing below support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower      Live Equiv: $273.71 +$0.13*

   Hogs: Lower            Futures: Mixed      Lean Equiv: $106.94 +$1.01**

   *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 news of Tyson closing two processing facilities and putting another
facility up for sale coupled with lower cash cattle trade, eliminated nearly
$8.00 for live cattle futures and $9.00 from feeder cattle over the past week.
We have seen this before, but seeing it happen after the market has already
declined substantially since June 25 is difficult to swallow. Cash cattle
traded lower, with Northern dressed cattle averaging $5.00 lower while Southern
live cattle averaged $7.00 lower. Packers will further attempt to leverage the
market this week as feedlots may have little influence for higher prices. Boxed
beef prices were mixed on Friday with choice down $0.60 and select up $2.00.
Feeder cattle cash prices in the country were lower for the week but held up
rather well considering the losses on the board. The Commitment of Traders
report showed fund traders adding 983 futures contracts, increasing their
net-long position to 65,949. They added 582 long futures positions, increasing
their net-long position in feeder cattle to 10,902 contracts.