Light cattle trade took place Wednesday mainly in Texas and at $2 higher than last week. Buyers seem more willing to open the checkbook in the attempt to procure needed cattle supply. Lean hogs closed in positive territory Wednesday, which may indicate follow-through buying Thursday.
Cattle: Higher Futures: Higher Live Equiv: $139.02 -1.07*
Hogs: Steady Futures: Lower Lean Equiv: $ 72.91 10.10**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Light trade took place Wednesday mainly in Texas and at $2 higher than last week. Buyers seem more willing to open the checkbook in the attempt to procure needed cattle supply. Futures were higher in reaction to higher bids with October futures finally able to close above $100 where it has not been since Aug. 26. Asking prices are set at $103 in the South and $167 to $170 in the North. More business is expected to be done Thursday.
Higher futures prices should provide some confidence for sellers to expect higher cash. December live cattle futures closed at the highest level since Aug. 12. It will still take a substantial effort to regain the losses of early August, but the market seems to be slowly gaining ground. Cutouts took a hit Wednesday, which is a bearish anchor on the market.