Robin Schmahl

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.

The cattle news cycle brought a lot of fireworks last week, and much of the same is expected this week. Uncertainty remains in all protein contracts as the market weighs additional shipments of ground beef at discounted prices.

Hogs found little strength in futures Monday on top of stronger pork cutout values.

It was a strong beginning to a holiday-shortened week with traders aggressively buying futures in the livestock complex. It seems that the oversold aspect of the markets and some positive technical indicators caught the attention of traders.