The livestock complex was able to post gains at midweek as selling pressure subsided. This may have been more directly associated with weaker grain prices. Liquidation in hogs finally ran its course, which may result in traders stepping back into the market.
Cattle: Steady. Futures: Higher. Live Equiv: $202.47 -$0.63*
Hogs: Steady. Futures: Higher. Lean Equiv: $111.78 +$0.77**
*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 took a little while for traders to become more confident to buy back into the market. Both live cattle and feeder cattle were lower for a time before the selling pressure subsided and futures were able to move higher. Technically, the price action Wednesday was not very supportive with futures posting lower lows and lower highs. Cash cattle look to remain steady for the week as packers are getting the cattle they need.
Cutouts were lower yesterday with choice down $0.49 and select down $1.85. With corn futures under slight pressure overnight, there is a good chance cattle futures will again be higher. Futures are carrying a discount to cash when generally they would carry a premium at this time of year. Weekly export sales will be important for price direction Thursday.