Live cattle and feeder cattle diverged to end the week. Feeders may have been under pressure over concerns of increasing placements. Live cattle uncovered some buying interest to end the week as cash cattle on Friday traded steady. Hogs rebounded from an oversold market and not because of higher cash or cutouts.
Cattle: Steady Futures: Mixed Live Equiv: $209.90 -0.06*
Hogs: Steady Futures: Higher Lean Equiv: $108.33 -4.81**
*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
Cash cattle traded steady with the week and with the previous week, providing traders some confidence to buy into the market. There is anticipation for potentially higher cash this week due to packers being willing to pay steady to higher cash over the past few weeks. There is some confidence boxed beef prices may be near, or at, support.
If boxed beef stabilizes, packers may be willing to pay a bit more to obtain the cattle they need to meet demand. Live cattle futures showed limited gains last week, but the gains of Thursday and Friday may have been an indication of further strength this week. Boxed beef prices declined slightly with choice cuts down $0.08 and select cuts down $0.06. Cash trading is not expected to take place Monday.