Higher livestock futures across the board Wednesday will hopefully translate into continued gains Thursday. However, the export sales report will be released Thursday, morning which could have an influence on price direction.
Cattle: Steady Futures: Mixed Live Equiv: $223.12 +$2.24*
Hogs: Higher Futures: Higher Lean Equiv: $118.52 +$0.73**
* 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
The strength of cattle futures Wednesday was refreshing to see, but it did not change the price charts much. Front-month June established an inside trading day, while later contracts remained in their sideways patterns. The positive aspect is the few cattle that traded were sold at $119 and steady with what took place on Tuesday.
Any further business that is accomplished yet this week will most likely be at steady cash. Unfortunately, steady cash is being viewed as a victory based on what has taken place over the past few weeks.
The problem is boxed beef continues to increase with choice up $3.53 and select up $2.27. The movement between boxed beef and cash is reminiscent of last year when boxed beef exploded higher without cash following.
Over a one-month period last year from April 8 to May 12, boxed beef increased $253.05. That will not happen again to the same magnitude, but there is a large disconnect between the two again.