Cattle futures held well in the face of pressure from financial and other commodity markets. Some support came from higher boxed beef prices. Hog futures could not hold as cash and cutouts fell.
Cattle: Steady Futures: Mixed Live Equiv: $230.61 +0.80*
Hogs: Lower Futures: Mixed Lean Equiv: $110.11 -2.52**
* 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 cattle complex rejected early losses to close mixed in live cattle and slightly higher in feeder cattle futures. The early pressure from outside markets was unable to keep the market down as traders began to focus on current price levels and market potential. Futures moved near the recent lows only to uncover technical buying interest at those levels.
Feeder cattle may be developing a sideways trading range while live cattle still have not developed a solid trend. Even though boxed beef prices finally showed some gains, traders are cautious whether stability has been found. Choice cuts increased $1.19 with select cuts up $1.00 on Monday. This was not a strong rebound, but a rebound nevertheless.
Cash cattle did not trade Monday as business does not seem as urgent as thought after limited trade last week. The Commitment of Traders report showed funds as net sellers of 21,550 contracts bringing their net long positions to 46,043.