The cattle complex is staged to open on a mixed basis thanks to an early combination of short-covering and long liquidation. Lean hog futures are also set to begin with uneven price action with nearby gaining ground on deferred issues.
Cattle: Steady-$2 LR Futures: Mixed Live Equiv $161.43 – .15*
Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $101.12 + .75**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
The cash cattle trade will be typically slow Monday with activity limited to the distribution of new showlists. We expect ready numbers to be generally larger than last week thanks to both unsold cattle carried over and an expanding supply of fed calves. Live and feeder futures should open on a mixed basis thanks to short-covering on one hand and long liquidation on the other.