Markets were higher except cattle to start the session.
Live cattle are mixed trying to recover after a sell off Thursday, while feeder cattle futures are under pressure with higher corn.
However, Scott Varilek of Kooima Kooima Varilek says cash has been steady so far this week in the South, mostly at $188.
Northern dressed cattle has been very light with most trades taking place at $310 dressed, which is $2.00 lower than last week’s weighted average. However, Varilek says some $196 bids were renewed on Friday and passed on.
Markets are also awaiting the Cattle on Feed Report with ideas of lower placements by nearly 3%, on feed numbers at 101% and marketings at only 92%.
He says the front end of the live cattle futures are leading to board and there is bull spreading as a result of the futures discount to the cash.
That steep discount should provide support to the futures but he thinks cash and cutout may slowly meet in the middle.
Weights have continue to creep up and were 30 pounds higher on all cattle and 2 pounds highs on steers verses a year ago.
Feeder cattle futures have fallen under the weight of slightly higher corn but the cash market continues to be on fire in the country.
Boxed beef cutouts have cooled from their seasonal highs and Choice values were down around $2 on Thursday, which may have accounted for part of the break in futures.
Lean hog futures are seeing short covering and continue to try to recover from last weeks contract lows.
Cutouts were up 93 cents Thursday and are teetering around $100 which is supportive for the futures as well as the 41 cent jump in the Lean Hog Index.
Grains also saw a technical bounce early with some support in soybeans and meal on recent export business.
However, Varilek says those gains may be difficult to hold with no weather threats and ideas of improving yields.
