The cattle complex regained some ground but not as much as one would have anticipated given the resolve of feedlots to hold out for higher cash this week. Hogs were higher in nearby months as a result of cash strength.
Cattle: Higher Futures: Higher Live Equiv: $202.80 -$1.22*
Hogs: Steady Futures: Higher Lean Equiv: $89.18 -$4.33**
*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 gained back some of their losses Wednesday but have a long way to go before prices regain the losses of the past week. Traders anticipate feedlots might be able to command a higher price for their cattle this week, but not to the extent of the increase last week. So far, there have been a few cattle traded about steady with last week, but that has not been a solid indicator for the rest of the week.
Packers continued to hold their bids at Tuesday’s level with limited interest shown by feedlots. Business is expected to be more active Thursday with packers likely forced to pay higher again for cattle. There is concern over continued weakness of boxed beef with choice down $1.46 and select down $2.32. Weekly export sales will be released Thursday morning.