Robin Schmahl

Much of the trading activity in cattle futures on Thursday was positioning ahead of the Cattle on Feed report Friday. Lower cash had been factored in and was not a focus. Hog futures closed mixed as traders determined whether there will be continued fundamental strength.

Cattle futures closed higher on Friday as traders had positioned themselves before the Cattle on Feed report. The report was neutral and will likely have limited influence on the market.

Cattle traders did not like the news of the U.S. border reopening for cattle imports. Deferred feeder cattle futures locked limit down by the close. Hog futures were under pressure from the beginning as the market seems to be correcting from being overbought.

Live cattle futures already had higher cash prices factored in, resulting in a mixed close Friday, while feeder cattle closed with solid gains. Hog futures were mixed as traders were more optimistic, but cautious, over the nearby contracts.

The close on Friday ended a tough week for cattle futures. The bombardment of expected negative news and lower cash trade pressured futures. Hog futures closed in negative territory with contracts closing below support.

Traders were cautious over the impact of slaughter resuming at the Fort Morgan plant and its impact on the market. Exceptionally strong boxed beef had minimal impact. Hog futures took it on the chin with new contract lows. The market is struggling to find support.

Cattle futures tried to establish support early on Wednesday, but buyers were unable to hold onto the gains. Light cash activity took place at lower prices. Hog futures had a limited price swing but closed in positive territory.

Most cattle contracts closed higher as traders balanced positions ahead of the report, the border reopening for cattle from Mexico and more beef to be imported into the U.S. Hog futures closed higher as short positions were covered in case bullish news developed.

Cattle futures could not hold up under the news of more beef being allowed into the U.S. quota- and tariff-free for 90 days to increase the ground beef supply and the reopening of the border for cattle from Mexico. Hog futures showed minor weakness with limited price movement throughout the day.

Cattle futures have not been able to shrug off the recent negativity in the market. Light cash trade shows weaker cash developing. Hog futures were unable to find support and set new contract lows as pork products show weakness.