Robin Schmahl

The livestock complex closed higher Friday in all contracts as traders remained optimistic. Continued strength in the cash cattle market resulted in triple-digit gains while hog futures were able to maintain gains.

Traders were optimistic in the livestock complex Tuesday. Live cattle futures regained the losses of the past weeks with feeder cattle trying to erase the recent losses. Hog futures agin pushed to new contract highs in February through October contracts.

Cattle futures received a shot in the arm as cash cattle traded higher on Thursday. Futures adjusted to the higher cash and may trade mixed Friday ahead of the Cattle on Feed report. Hog futures showed some unwinding of spreads Thursday with nearby contracts eliminating the gains of Wednesday.

Cattle futures closed lower Tuesday and hog futures closed higher. There was little fundamental reason for cattle to be under pressure other than the weakness of boxed beef. Hogs continue to enjoy good demand and packer aggressiveness.

Thursday cattle showed another day with traders holding back waiting for further direction from cash and boxed beef. Hog futures showed some unwinding of spreads, resulting in deferred contracts making new highs.

Trader buying interest remained subdued Monday, leaving futures lower for cattle and mixed for hogs. There may be little to generate buying interest in cattle until cash trade takes place. Hogs are balancing technical traders nervous over the record-long positions and packer interest.

Cattle futures were lower Friday as lower cash came to fruition and boxed beef continued to weaken. Hog futures continued to show spread trading with pressure on the nearby months. Futures continue to hold well with the market correcting the overbought status.

Livestock futures were higher Tuesday, but traders had little fresh news to trade. A few cattle traded have traded already this week, indicating feedlots may be anxious to move cattle. Hogs continue to push higher on strong packer interest.

Cattle futures were choppy Wednesday, lacking any specific direction. No further cash sales took place, leaving traders guessing. Hogs came back nicely from the lows and the negativity that was prevalent in the market for much of Wednesday.

Most livestock contracts closed lower Thursday with disappointment over cash prices and product prices. There was no category that did not come under pressure.