Cattle futures were pummeled as the news of the avian flu virus in dairy cattle continued to circulate. Funds continued to liquidate long positions. Hog futures found substantial strength as they were benefiting from the avian flu virus and reacting to strong cash and cutouts for much of the week.
Cattle futures tried to push higher Tuesday but could not hold early gains into the close. Higher cash is already factored into the market. Hog futures had a large price swing, but either challenged or made new contract lows by the close.
Live cattle floated along Monday uncertain of what cash will do this week. Feedlots dug in last week, but will they remain unified another week? Hogs could not push higher with uncertainty over cash.
Cattle and hog futures did an about face Thursday with cattle suffering triple-digit losses while hogs showed triple-digit gains. It seemed that the expiration of October feeder cattle Thursday and the last trading day for cattle Friday caused the market to melt back. Hogs made a nice technical bounce.