The cattle complex finally reacted to the bullish implications of the Cattle on Feed report. Triple-digit gains were seen across the board. Hogs moved in the opposite direction with triple-digit losses as fundamental support remains elusive.
Cattle: Higher Futures: Mixed Live Equiv: $212.59 +0.61*
Hogs: Lower Futures: Mixed Lean Equiv: $101.29 -0.26**
*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
Cattle futures finally reacted to the bullish implications of the Cattle on Feed report. This may have been fueled by some light cash trade developing in Texas at steady to $1 higher from last week. Traders seem to be hoping for more as front-month October live cattle futures closed $1.80 higher at $126.85.
The October contract goes off the board on Friday. Generally, early cash trade seems to set much of the tone for the week. This may provide feedlots with confidence to hold for higher cash. Boxed beef was mixed, indicating the possibility of support being established. Choice cuts increased $1.72 with select cuts down $0.65.