The livestock complex was bathed in a sea of red at the end of Monday with the exception of August hogs as they remain in line with the index and will see limited volatility through the end of the week. Bearishness has gripped the hog market as concern over demand has triggered further liquidation.
Cattle: Steady Futures: Mixed Live Equiv: $222.34 +2.54*
Hogs: Steady Futures: Mixed Lean Equiv: $131.59 +0.57**
* 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 were on a seesaw Monday as traders positioned themselves for what they anticipated would be the next market move or they just simply are scalping the market in an attempt to take some quick intraday profits due to it being a sideways market. It is possible cattle futures could have closed higher were it not for the substantial pressure on the hog market.
Cash business did not surface Monday as it was hoped that packers might be more aggressive due to limited trade last week. Smaller showlists were distributed Monday in Texas, Kansas and Nebraska/Colorado. Feedlots seem to be current with marketing as weights have not been increasing as they usually do during this time of year.
Feedlots may be holding back in the attempt to push packers to step up to the plate with higher bids. After all, cutouts continue to rocket higher with choice cuts Monday up $3.54 and select cuts up $3.72.
The Commitment of Traders report showed funds as net buyers of 2,008 contracts increasing their net-long positions to 67,906 contracts.