With most cash activity done for the week on Friday, there was little for traders to look at except for projections of what cash might do this week. Hog traders were uncertain over just what the cash market may do. Earlier in the week, cash was stronger than anticipated. Maybe this week will be the same.
Cattle: Lower Futures: Lower Live Equiv: $196.47 +$0.10*
Hogs: Lower Futures: Mixed Lean Equiv: $92.56 -$5.69**
*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
There is not much to get excited about this week for the cattle complex. It will be a shorter trading week as markets will not be open Friday. Cash trade may take place earlier rather than later as both packers and feedlots may want to accomplish business due to the upcoming holiday. The prospect for cash is not a good one as it is anticipated to decline again.
Another development that may have an impact is the surge of the omicron virus and the impact it may have on the economy. Many outside markets are under substantial pressure due to the Netherlands initiating another lockdown with some other countries in the United Kingdom possibly considering similar measures.
This should not impact demand, but it could impact production capacity if this becomes more widespread in the U.S. Processing facilities could be impacted due to employees possibly being out due to sickness. Boxed beef was able to increase slightly Friday with choice up $0.04 and select up $0.14.