The livestock complex took a breather Tuesday with traders now assessing just how much higher beef prices will go and whether the uptrend in hogs can be maintained.
Cattle: Higher Futures: Mixed Live Equiv: $201.02 +1.53*
Hogs: Steady Futures: Mixed Lean Equiv: $130.30 +0.55**
* 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 tried, but just could not maintain the upward momentum Tuesday. The October contract made a higher high reaching near chart resistance, but then fell back as buying interest waned.
Boxed beef continued to push higher as retail is looking ahead to Labor Day demand. Choice cuts gained $1.80 with select cuts up $3.02. Whether the strength in boxed beef will increase the need for packers to step up and pay more for cattle remains to be seen.
The few cattle that traded Tuesday were not a good indication of what will possibly take place Wednesday or the rest of the week. Weights are holding rather steady at the time of year when generally they would increase, indicating marketing is current.