Live and feeder futures seem likely to open on a mixed basis tied to follow-through buying and long liquidation. Lean hog issues should also see uneven price action in the early going with nearby probably going on deferred.
Cattle: Steady Futures: mixed Live Equiv $140.16 – 0.65*
Hogs: Steady Futures: 50-100 HR Lean Equiv $109.97 + 0.79
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Look for a typically quiet Monday in cattle feeding country with packers exclusively interested in the collection of new showlists. We expect the fed offering to be somewhat larger than last week. Both buyers and sellers are eager to learn whether last week’s firmness was a one-trick pony or the first step in a more significant recovery.
Our guess is that initial asking prices will start out around $122-plus in the South and $192-plus in the North. Live and feeder futures should open on a mixed basis thanks to a combo of follow-through buying and long liquidation.