Feeder cattle could not hold gains into the close Wednesday. Live cattle posted gains, but not by very much. However, trading activity did correct the market from being oversold after two days of losses. The hog rally fizzled out in front-month April as futures settled lower while later contracts posted gains.
Cattle: $1.00 Lower Futures: Mixed Live Equiv: $150.58 -0.29*
Hogs: Steady Futures: Lower Lean Equiv: $ 72.34 +0.23**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Limited cash cattle trade developed Wednesday running mostly $1 lower than last week. This was somewhat expected due to the steep decline of futures. Without a rebound of futures Wednesday, packers will hold for lower prices.
Winter weather has moved back into cattle country, which could get buyers excited. It seems that that may not be enough to change packer sentiment. Feeder cattle were higher most of the day, but could not hold on until the closing bell.
Live cattle closed higher after a day of futures trading in a price range of only $1. The close was not technically exciting leaving the potential for bears to have the upper hand.