The livestock complex took it on the chin again Wednesday. There were hopes of follow-through strength, but such was not the case. Cash weakness was the overriding factor for cattle. Hogs felt the pressure from cattle and other commodity markets.
Cattle: Lower. Futures: Lower. Live Equiv: $190.40 +0.02*
Hogs: Lower. Futures: Mixed. Lean Equiv: $115.24 +$2.34**
*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 could not find further buying interest after Northern cattle traded $4.00 lower than last week. Southern cattle continue to trade $2.00 lower with hopes for stronger price evaporating. Boxed beef showed no solid support with choice up $0.26 and select down $0.15. Feedlot wanted to move cattle and packers saw their willingness to take a lower price.
Cattle supplies are expected to tighten as the year progresses, but USDA estimated increased beef production on the World Agricultural Supply and Demand (WASDE) report Wednesday compared to their February estimate. They increased their estimate of beef production 195 million pounds totaling 27.570 billion pounds.
However, this would be 367 million pounds less than 2021. The increased the average price estimate to $139.50 per cwt, up $2.00 from February.