New contract highs were made in most livestock futures Thursday. There is a strong chance that will continue Friday, but it is Friday and sometimes profits may be taken, putting some pressure on futures. Most of the attention will be directed toward the World Agricultural Supply and Demand report and the results of USDA estimates.
Cattle: Steady Futures: Mixed Live Equiv: $200.42 +$4.35*
Hogs: Steady Futures: Mixed Lean Equiv: $117.59 +0.31**
* 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
New contract highs were achieved again in live cattle futures Thursday. Boxed beef prices soared, posting incredible gains. Only June and August futures showed slight declines; the rest of the complex closed higher.
Export sales were somewhat dismal, 3% lower than last week and 14% lower than the four-week average. But that had little impact on the overall bullishness of the market.
Cash business is finished for the week except for a few lingering sales that may be done Friday. The steep uptrend over the past three weeks continues to bring more buyers into the market as the trend is your friend.
The surge of April futures may be setting the stage for cash next week as feedlots set their sights on higher prices. The large increase did leave a gap in the chart that may be filled before the contract goes off the board at the end of the month.