Friday was another day with a fairly tight trading range and not much to show for it in the end. Any cash business that was accomplished was done at similar prices of earlier in the week, leaving little to go on. Hogs were able to rally despite lower cash and cutouts.
Cattle: Steady Futures: Mixed Live Equiv: $214.22 +0.34*
Hogs: Lower Futures: Mixed Lean Equiv: $101.59 -1.17**
*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
The entire last week was eventful with futures not doing much even though cash cattle traded $3.00 to $4.00 higher. Futures already had the gains factored in, eliminating the need to push higher. The concern is that traders do not seem to be anticipating higher cash this week but are opting to see whether it will transpire before adding further premium. Feedlots will be asking for more as they know packers need cattle.
Boxed beef is all over the board with prices gyrating up and down. On Friday, choice cuts fell $2.36 while select cuts increased $1.74. Feeder cattle came under pressures as grain prices were higher. But overall demand for feeder cattle is strong at higher prices. The anticipation is for higher finished cattle prices to more than compensate for higher feed prices.