The cattle market just could not find the buying interest Monday to match the bullish expectation of cash this week. It was too early in week for any definite interest from packers, but traders were unwilling to buy futures in anticipation of fundamental support. Hogs fared a little better with futures mixed due to slightly higher cash and good demand.
Cattle: Higher. Futures: Mixed. Live Equiv: $199.77 +$0.52*
Hogs: Steady. Futures: Mixed. Lean Equiv: $92.88 -$5.33**
*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 closed in the red across the board Monday as traders again want to see proof of higher cash before jumping on the long side. Showlists are higher in Kansas and Texas, which could be expected due to limited cash activity last week. There were no bids or offers posted as usual early in the week as neither side wants to tip their hand early.
One would think packers might be more aggressive this week based on lighter cash activity last week, but they remain uncertain of demand. Product movement over the holidays is being assessed and supply replenished as needed. Boxed beef was moderately higher with choice up $0.77 and select up $0.67.