Cattle futures posted gains last week, but there is no indication that the trend has changed. Futures have yet to reach above technical resistance, which could being in further speculative buying. Lean hogs may be a different story. Expanded limit-up moves in December and February contracts should open Monday with follow-through strength.
Cattle: Steady Futures: Mixed Live Equiv: $142.59 +0.34*
Hogs: Lower Futures: Lower Lean Equiv: $ 73.01 -2.27**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle trade last week was a bit light with the idea that the strength of futures last week should result in higher prices this week. Feedlots may offer more for sale this week at higher prices. Most of the trade last week was steady with the previous week and did not reflect stronger futures. However, sometimes cash and futures do not follow or lead each other.
Showlists will be distributed and bids will be placed Monday, but nothing will be done until later in the week, as usual. Technically, futures will need to break above resistance to change the trend. October price resistance is at $101.67 with December at $106.55. So far the trade has been unable or unwilling to close some of the large chart gaps left from August.