Traders may take a wait-n-see attitude early in cattle futures. There is hope for higher cash, but packers may not be too aggressive knowing the cattle are out there. There is no reason to believe there will be a change in trend for hogs for the time being. Price has not yet reached consumer resistance.
Cattle: Steady Futures: Mixed Live Equiv: $245.65 -1.07*
Hogs: Steady Futures: Higher Lean Equiv: $139.35 +1.10**
* 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 may remain under pressure Monday due to higher grain prices overnight. Live cattle might begin the day mixed with some anticipation of higher cash for the week. Packers may hold back early, waiting to see how anxious feedlots might be to move cattle due to higher feed prices.
However, with packing plants up and running, packers may need to be slightly more aggressive with cattle purchases this week. Traders will be cautious early until they see how cash bids will unfold. However, that is not expected Monday as showlists will be posted with no business expected to be done.
Boxed beef prices declined Friday with choice down $1.57 and select down $1.43. One has to wonder if the run higher for boxed beef has come to an end, but one day does not necessarily mean a change in the market trend.