Live cattle tried to hold near unchanged but succumbed to further pressure after some bearish numbers of beef production were seen on the WASDE report. Hogs were under pressure at the start and just did not look back.
Cattle: Steady Futures: Mixed Live Equiv: $210.47 -0.52*
Hogs: Steady Futures: Mixed Lean Equiv: $109.46 -5.63**
*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
Pressure increased on live cattle futures after the WASDE report was released Tuesday with USDA estimating an increase of beef production. The average cattle price for next year is $128.75. This may be overcome over time by the potential for China to become a large importer of beef next year.
There were no cattle traded on the cash market as there has been little interest shown so far by packers. Feedlots are asking higher prices, as usual. The numbers on the WEADE report and further pressure on futures may have packers bidding no better than steady prices. Boxed beef prices were again lower with choice cuts showing a minor loss of $0.05 while select cuts fell $2.29.