Continued underlying support is developing through all lean hog futures as traders are focusing on continuing the first strong rally of 2019.
Cattle: Steady Futures: Mixed Live Equiv: Unavailable*
Hogs: $1 Higher Futures: Higher Lean Equiv: Unavailable**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
As spring flooding issues continue to move south and east, and the devastation in many areas already hit and where water has peaked, the focus will be on short- and long-term implications to the market. From a production and packing sense, keeping cattle safe and well fed as well as finding transportation and passable roads continues to be the main focus of many cattle producers through the last week.
This will continue to be a challenge as new areas start being impacted by floodwaters. The fact that snowmelt from the mountains is not likely to even be a factor at this point, has many processors in all areas of cattle country concerned that these flooding issues may continue to be a recurring theme through most of the spring and early summer.
April live cattle futures remain stuck in a wide $3.50 per cwt trading range that may keep prices from breaking these barriers in the next few weeks.