Wednesday, February 12, 2025  
 
 
 
 
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DTN Early Word Livestock Comments      02/12 06:13
   Cattle Futures May Show Further Pressure Wednesday

   Cattle futures were unable to break out of the recent downtrend with selling
pressure resuming on Tuesday. Hog futures pushed higher as traders felt
confident of stronger pork prices and demand.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower         Futures: Mixed        Live Equiv: $236.98 -$0.88*

   Hogs: Higher         Futures: Mixed        Lean Equiv: $105.37 +$0.10**

   *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 took it on the chin Tuesday and optimism is subdued. The
market is making the anticipated correction despite tight supply fundamentals.
The bottom line is demand. Has the market moved to a level at which demand has
been impacted sufficiently to indicate prices are too high even with tighter
supplies? We quickly become accustomed to high prices and expect them to remain
that way. The reality is that even if the price declines by $20 or so, cattle
prices are still very high. Further weakness in futures may increase the desire
of feedlots to move cattle more aggressively even at lower prices. Holding them
over may only result in yet lower prices. Boxed beef prices closed lower with
choice down $1.04 and select down $1.71.
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