Cattle futures remain entrenched in a tight sideways trading pattern as the market awaits the Friday Cattle-on-Feed report.
Cattle: Higher Futures: Mixed Live Equiv: $153.09 -0.47*
Hogs: Lower Futures: Lower Lean Equiv: $91.43 +1.91**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle futures traded in a range of about $1.50 managing to close slightly higher yesterday. Futures remain entrenched in a tight sideways trading pattern as the market awaits the Friday Cattle-on-Feed report. Analysts estimate on-feed numbers at 101.2%; placements at 112.2%; and marketed at 99.6%.
Cash cattle beginning to trade at higher prices than last week was not enough to spark trader interest in increasing their long positions. Higher cash has already been factored into the market. Offsetting the bullishness of higher cash trading was the decline of boxed beef prices.
Fund traders remain friendly to the market and remain active buyers as seen by increasing open interest. However, the overbought market and potential for a market correction, could trigger significant liquidation.