Most of the livestock complex was able to close higher Tuesday. The hope is that the trend will continue. Export sales reports will have an influence on some trading activity and price direction Wednesday. Lower grain futures may provide some support.
Cattle: Higher Futures: Higher Live Equiv: $230.62 +1.53*
Hogs: Steady Futures: Mixed Lean Equiv: $120.70 +0.91**
* 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
Live cattle futures were mixed, but generally higher despite the significant weakness of corn futures. The beneficiaries of the decline of corn were the feeder cattle, which posted triple-digit gains. Further pressure on grains overnight should again benefit the cattle complex.
Some cash business took place Wednesday in the South at $119 to $120 with dressed cattle in the North at $191. Further business should unfold Thursday as packers will need to keep purchasing ahead.
Boxed beef continues to escalate seeing no price resistance and continually widening the price gap between cash and boxed beef. USDA forecast beef production to reach 27.970 billion pounds this year with production next year slightly lower at 27.405 billion pounds.
Exports are estimated this year at 3.227 billion pounds and 3.225 billion pounds in 2022. The estimate for steer price is forecast at $116.30 this year with an increase to $122 next year.