2/28/2024 0 Comments Feeder cattle futures commentary![]() The failure of cattle futures to hold gains Tuesday indicates the strength was more the result of short-covering and not new buying interest.īoxed beef prices have been stronger, indicating demand remains good. Live cattle futures have chart gaps above the market that may be filled at some point. Market-ready hogs are plentiful leaving packers less aggressive as they see no evidence of tightening supply. ![]() Futures are oversold technically but that is meaningless if fundamentals continue to remain bearish. The National Direct Afternoon Hog report showed cash down $0.84. Both cash and cutouts continue to struggle as supply exceeds demand. Futures have moved straight down over the past three weeks without a retracement. Hogs continue to struggle with February through June contracts making new lows. Buyers of feeder cattle have pulled back and are purchasing cattle at lower prices as the price outlook for fat cattle does look quite as rosy as it was a few weeks ago. That may not provide much support given the current negativity in the market. Boxed beef was higher with choice up $1.44 and select up $2.98. Some cattle owners fear holding for higher prices may only result in yet lower prices. Some cattle have already traded this week as the drop in futures triggered some cattle sales early with prices $1 to $2 lower. The last day to trade October feeder cattle is Thursday with the last day for October live cattle being Tuesday. October live cattle and October feeder cattle closed higher as they need to converge. Once that ran its course, futures fell back resulting in a mixed close. Mostly short-covering took place as some traders banked profits after the large decline. GENERAL COMMENTS:Ĭattle tried to rally back somewhat early Tuesday, opening higher and then moving to triple-digit gains. ** based on formula estimating lean hog equivalent of gross packer revenue. Index has been updated to depict recent changes in live cattle weights and grading percentages.) *Based on formula estimating live cattle equivalent of gross packer revenue. Hogs: Lower Futures: Mixed Lean Equiv: $ 93.83 -$1.96** Cattle: Lower Futures: Mixed Live Equiv: $224.27 +$1.35*
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