The livestock complex closed lower across the board Wednesday as traders just did not find solid support under the market. Hogs nearly closed lower chart gaps. Cattle saw further pressure due to steady cash developing.
Cattle: Steady Futures: Lower Live Equiv: $209.39 -1.08*
Hogs: Steady Futures: Higher Lean Equiv: $111.93 +2.47**
*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
Both live and feeder cattle closed lower with deferred contracts posting triple-digit losses due to a more bearish supply outlook. Cash cattle trade developing at steady prices with last week did not provide support and likely was responsible for lower prices as traders saw this as a disappointment. Higher cash trade could develop yet this week, but initial trade generally sets the stage for the rest of the week.
The Fed Cattle Exchange will hold a special auction Thursday morning in addition to the weekly auction held on Wednesday. Boxed beef remained under pressure with choice cuts down $1.05 and select cuts down $2.65.