Look for live and feeder contracts to open hardly higher, sparked by bullish spending by short-bought packers. Conversely, lean hog issues should start out moderately lower, checked by follow-through selling and long liquidation.
Cattle: Firm w/Wed Futures: 100-200 HR Live Equiv $144.30 – .36 *
Hogs: Steady-$1 LR Futures: 25-50 LR Lean Equiv $ 80.14 – .69 **
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Light to moderate trading developed in most cattle feeding areas on Wednesday as sellers eagerly responded to aggressive packer bids. Although we assume there are still plenty of unsold cattle still on showlists, it will be interesting to see how Mandatory Reports are assessing the total movement.
Opening bids should be around $210 to $212 in the North and $130 to $132 in the North. The balance of remaining showlists should be priced around $213 plus in the North and $133 $134 in the North. Live and feeder futures are expected to open sharply higher, jazzed by Wednesday’s pop in cash business and technical buying.