Traders have basically put the cyberattack on JBS in the rearview mirror as the crisis was averted quickly. Live cattle are struggling with the inability of cash to trade higher and how the seasonal decrease in demand will unfold. Hogs price continue to increase with no resistance in sight.
Cattle: Steady Futures: Mixed Live Equiv: $246.72 +0.46*
Hogs: Lower Futures: Higher Lean Equiv: $138.25 +1.93**
* 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
Feeder cattle and deferred live cattle contracts put in a good showing Thursday as the cyberattack is basically history except for the cleanup. The aftereffects will be getting slaughter numbers caught up to minimize a backlog. Feeder cattle found support from falling grain prices. Cash did not change Friday and really was not expected to.
Southern trade was mostly at $119 to $120, which is steady to $1.00 than last week. Northern cattle traded at $191 and steady with last week. No fuel there to start any kind of fire under the market. The huge surge of boxed beef on Wednesday did not follow though as aggressively Thursday. Choice increase $0.39 with select of $1.28.
There is hope the surge of boxed beef this week will be the foundation for higher cash next week. However, there is concern that there may be some backlog of cattle that will need to be cleaned up in the near term. The trade will watch this closely. Weekly export sales will be released Friday morning, delayed due to the holiday on Monday.