Cattle futures tried to follow through on Thursday’s strength but there just was not enough buyer interest after cash business was mostly done for the week. Hog futures gapped higher with some contracts, leaving a gap as traders bought into the market aggressively.
Cattle: Steady. Futures: Mixed. Live Equiv: $218.59 +$1.17*
Hogs: Lower. Futures: Mixed. Lean Equiv: $99.19 -$3.23**
*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.
Boxed beef prices continued higher but that was not enough to support the market after cash traded generally steady for the week. Traders are cautious over the potential for cash prices over the next few weeks. The market looks more bullish over the long term, but with packers purchasing the required cattle for immediate slaughter as well as for the next few weeks, it leaves the market with potentially limited upside.
Boxed beef prices continue higher, but that is not translating into cash prices. Heavier cattle weights and plentiful supply for the near term leaves the market is the position of limited upside. Trading activity may be two-sided as the market moves into the weekend.