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This is your Live Cattle podcast.
Hey everyone, welcome back to Daily Live Cattle Price Tracker. I'm your host Vanessa Clark, and boy do we have some exciting market action to talk about today.
Yesterday was a fantastic day for live cattle futures, with the market hitting new contract highs across nearly all contracts. The June contract climbed two dollars and forty-seven cents to close at two hundred fifty-five dollars and ninety-seven cents per hundredweight. The August contract also performed well, reaching two hundred fifty-one dollars and twenty cents. Even the April contract, which is about to expire, traded at two hundred fifty-six dollars and thirty-five cents by midday Wednesday, setting new highs in the spot market as well.
What's driving all this strength? Well, cash trade was the big story. Packers came in early in the week and reported cash cattle trading four dollars higher in the southern region. This is significant because it's unusual to see cash cattle moving this early in the week, and it tells us that packers are short on inventory and need to fill their slaughter schedules. Even though feedlot margins are negative right now, they're holding out for higher prices to meet demand.
The volatility index for live cattle futures is sitting at sixteen point four percent, showing some elevated trading activity but with solid fundamentals supporting the market. Traders are showing confidence that we've found some solid ground here.
On the feeder cattle side, we saw a mixed session with some initial strength followed by a pullback. Rising crude oil prices created some headwinds there, but feeder cattle still traded higher across the country in response to the strength we've been seeing in the live cattle futures over the past few days.
Over in the hog market, lean hogs surged with packers becoming more aggressive. The July contract climbed to one hundred six dollars and thirty-five cents, with traders buying with confidence and speculation that we might have found the bottom for the summer season.
So there you have it, folks. Live cattle continuing to show strength with new highs and solid cash trade supporting the market. Make sure you tune in tomorrow for the latest updates. Thanks for listening to Daily Live Cattle Price Tracker, and don't forget to subscribe so you never miss an episode.
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