The nearly steady uptrend in live cattle futures since early September does not show signs of slowing down. Hogs just cannot seem to get a break from the bearishness overhanging the complex.
Cattle: Steady Futures: Mixed Live Equiv: $149.25 +0.64*
Hogs: $1 Lower Futures: Higher Lean Equiv: $ 80.49 -0.42****
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
The nearly steady uptrend in live cattle futures since early September does not show signs of slowing down. Demand remains strong. Buyers remain aggressive. Technically, the market is overbought, but it was for basically the entire month of October. Selling into an overbought market has not been the right thing to do.
Strong cash is supplying plenty of support with another significant jump on Friday. Cash does not trade on Mondays and there may not even be any showlists distributed as buyers and sellers wait. Friday’s Commitment of Traders report showed funds long 60,462 contracts, an increase of 4,618 from the previous week. They hold 43,162 short positions, which is a decrease of 3,650 contracts for the week.