Cattle were under pressure with feeder cattle leading the way. Futures just could not find buying interest when cattle began trading early in the week at steady to lower prices. Hogs were impressive even though cutouts were lower. Strong cash provided support.
Cattle: Lower. Futures: Mixed. Live Equiv: $215.95 +$3.39*
Hogs: Steady. Futures: Higher. Lean Equiv: $94.16 -$1.86**
*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
As anticipated, feedlots wanted to sell some cattle earlier rather than later. They had no desire to hold out for later due to the potential that buyers may finish earlier in the week and they will need to hold cattle another week. Cattle in the North were traded at steady money while the South traded cattle $1.00 to $1.50 lower. This sets that stage for the week as some of the cattle purchased were for deferred delivery, leaving packers with the upper hand.
Boxed beef closed higher with choice up $1.63 and select up $1.34. Consumer demand is strong and with shortages showing up in grocery stores, consumers are purchasing more in order to stock up a little when it is available. This is giving the impression of stronger demand. The Commitment of Traders report showed funds as sellers of 10,405 futures bringing their net long to 61,941 contracts.