A good market just cannot be kept down. Any dip in livestock futures has been a buying opportunity. There seems to be no end in sight for increasing demand for both beef and pork.
Cattle: Higher Futures: Higher Live Equiv: $196.07 +$2.57*
Hogs: Higher Futures: Higher Lean Equiv: $117.28 +1.30**
* based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. Index has been updated to depict recent changes in live cattle weights and grading percentages.)
** based on formula estimating lean hog equivalent of gross packer revenue
June and later cattle futures closed at new highs Wednesday, propelled by strong buying interest as traders are bullish about prices and rightly so. Boxed beef prices have shown some amazing gains over the past week and it appears there is more yet to come.
Demand is on fire and packers need to procure cattle to meet that demand. Packer profits are strong due to strong beef prices. They are more willing to bid up aggressively, hoping feedlots will feel good about higher cash and sell some cattle.
Cash was higher than Tuesday on Wednesday in some areas, so one has to wonder if those waiting to sell later this week will capture significantly higher prices. Packers already may have their sights set on next week, wondering just how much more they will need to pay to obtain needed supply.