Robin Schmahl

The cattle complex posted losses across the board as cash has not traded giving the impression the packers may not be short-bought. Hog futures showed gains supported by packer aggressiveness and higher pork values.

The livestock complex was higher on Friday as traders were comfortable they were positioned ahead of the Cattle on Feed report and cash held as it traded earlier in the week. Hogs pushed higher on renewed optimism over demand.

Live cattle futures could not find the support they needed on Monday as traders are uncertain about cash strength this week. The strength of the cattle complex was confined to the January feeder cattle contract. Hogs fell back ahead of the Quarterly Hogs and Pigs report as traders positioned themselves to reduce exposure.

There was not much for traders to go on during the shortened trading day on Tuesday. There were no reports of cash cattle trading and no reports of boxed beef prices. Hog futures followed a similar pattern as trading activity was light with limited interest in a price direction

Traders came to the market aggressively on Thursday with the idea cash cattle will trade higher. Strong boxed beef and higher futures may leave feedlots holding firm with their offers. Hogs struggled much of the day but managed to hold well closing mixed as demand seems to be holding.

Feeder cattle and deferred live cattle futures broke through technical resistance on Friday to resume the uptrend. Higher cash cattle trade and the strength of boxed beef provided support. Hog traders could not find much to get excited about and futures closed with minor gains.

Cattle futures did not show much on Monday with a mixed close for live cattle and minor gains for feeder cattle. It is doubtful cash cattle will trade Tuesday. Hog futures took it on the chin Monday with substantial losses and breaking below the trading range.

Even though cattle futures closed lower Friday, the losses did not damage the uptrend. Traders decided to take profits despite the bullish fundamentals. Hog futures remained under pressure, making another low and closing lower.

The strength of cash cattle last week supported cattle futures on Monday. Feedlots and traders are optimistic higher cash prices will again unfold this week. Hog futures showed impressive resilience despite the continued weakness of cutouts.

Cattle futures pushed higher Tuesday, but were again unable to hold all of the gains made during the day. However, the market continues to improve, setting the stage for higher prices. Hogs held their ground in most contracts, even though the underlying fundamentals provided little support.