Buying expected to move into the market Wednesday as traders react to triple-digit gains. A combination of follow-through support and light cautionary protectionary adjustments are expected early in the session.
Cattle: Steady $2 HR Futures: Mixed Live Equiv $132.88 + 0.06*
Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 78.86 + 0.17**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle buyers move into midweek following aggressive futures gains, which developed Tuesday afternoon. This could lead to the expectation that additional packer interest could slowly step back into the market through the morning Wednesday, but more than likely it will be another slow affair that will allow trade to develop through the end of the week.
The strong futures rally Tuesday will likely allow for a combination of follow-through buyer support as a combination of commercial support moves back into the market while traders also try to take advantage of positioning opportunities midweek. Traders will also closely watch the volume and price direction of the Fed Cattle Exchange auction through the morning for further direction of market development.