Friday Morning Livestock Market Update - Mixed Trading Activity Ahead of the Weekend

GENERAL COMMENTS:

Cattle futures found support, keeping the recent uptrend intact. Cash cattle have yet to trade for the week, leaving traders friendly but cautious. Futures may trade mixed as traders seem to have little appetite to remain overly exposed over a weekend as no one knows what news may develop. Feedlots may hold for no less than steady cash, and if it is not received, they will hold cattle over to next week. Cattle numbers are tight, and nothing definite has materialized from the large planned beef imports. Boxed beef prices were lower in both categories. Choice was down $2.40 and select down $0.28.

Hog futures traded within a range of about $1.00 on Thursday, with limited volatility expected Friday. Cash was lower on the National Daily Direct Afternoon Hog report, posting a loss of $0.39. Packers may not be aggressive Friday as they have completed most of their business for the week. Pork cutout values declined $1.82, eliminating Wednesday's gain. Bellies fell $11.79 with ribs down $5.11. The choppiness of cutout values continues to limit upside price potential. Traders need to see more price consistency to provide the confidence to establish long-term positions. The WASDE report Friday will provide USDA's estimates for pork production, pork supply and use and quarterly prices.

	BULL SIDE		BEAR SIDE
1)	Cattle futures maintain the uptrend as cattle supplies remain tight and the market recovers from the recent negativity.	1)	The expectation is for steady cash trade, but if lower prices develop, the market could come under pressure.
2)	Uncertainty around cattle prices and drought in many areas may discourage farmers and ranchers from rebuilding their herds. This will prolong tight cattle supplies.	2)	Boxed beef prices have been choppy and may be an indication of slower beef demand.
3)	Hog futures recovered from the earlier week's decline, with contracts holding a sideways pattern and support.	3)	Hog futures have been unable to move out of the recent sideways pattern, leaving the market vulnerable to renewed selling.
4)	The declining hog weights may indicate packer-owned supplies are being pulled forward due to lower market-ready hog supplies.	4)	Pork cutout values continue to remain choppy, providing little confidence to traders for higher prices.