Active buyer support quickly flooded livestock trade late Wednesday. This is expected to bring additional activity during early trade, despite initial volume remaining limited.
Cattle: Steady Futures: Mixed Live Equiv: $150.61 -0.46*
Hogs: $2 Higher Futures: Higher Lean Equiv: $ 78.51 -0.09**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Active buying has continued to move into nearby and deferred feeder cattle trade. Potential pullbacks in the March Cattle on Feed report, or long-term market direction that could come with any announcement of cattle impacted during the recent winter storms and flooding, is creating underlying support through the entire complex.
May feeder cattle contracts have now rallied $6 per cwt in the last week, and have broken through November 2018 highs. This is helping to solidify additional volume through the entire complex.
Cash cattle trade remains inactive at this point, although the focus will continue to be based on end of the week activity as most trade will not get going until sometime Friday.