The livestock complex was bathed in red Monday, having little to go on as both the Cattle on Feed and Hogs and Pigs reports will be released after the close on Thursday. Cash is expected to be lower for both cattle and hogs this holiday-shortened week.
Cattle: Lower Futures: Mixed Live Equiv: $196.67 +$0.20*
Hogs: Lower Futures: Mixed Lean Equiv: $93.23 +$0.67**
*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 were under pressure with feeder cattle leading the complex lower. Cash cattle are expected to trade lower for the week, succumbing to the pressures of the holiday period and generally slowing demand. Boxed beef prices were mixed with choice down $0.63 and select up $2.39. However, cutouts have been declining, setting the negative market tone.
Live cattle futures are in a solid downtrend with prices near a level of support. However, that support may not hold due to the current weakness of cash. The Cattle on Feed report is looming with a release on Thursday after the markets close for the extended Christmas weekend.
Traders may flatten their positions before the report and the ever-changing COVID virus news. The Commitment of Traders report showed funds as net buyers of 2,404 futures contracts, bringing their net-long positions to 82,254 contracts.