Limit gains in lean hog futures Friday is sparking increased underlying support through the entire livestock complex, although continued market strength may come with short-term market corrections.
Cattle: Steady Futures: Higher Live Equiv: $149.63 -0.63*
Hogs: $1 Higher Futures: Higher Lean Equiv: $ 73.35 +0.06**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Sharp triple-digit gains late last week has sparked increased underlying support through the entire complex. Weather and flooding concerns are still the main focus through most of the northern part of cattle country. Not only are many feed years underwater, with no idea of how many cattle have been washed away or killed, but the inability to get through many highway systems has kept much of cattle country in a limbo. The inability to move cattle will significantly impact overall packer activity through the week and had an impact on the overall amount of cattle sold last week on negotiated trade.