Live and feeder contract should open at least moderately lower, checked by follow-through selling uncertain midsummer fundamentals. On the other hand, lean hog futures are likely to open on a mixed basis tied in part to further bear spreading.
Cattle: Steady Futures: 50-100 LR Live Equiv $139.63 – 0.52*
Hogs: Steady-0.50 LR Futures: mixed Lean Equiv $109.48 – 0.20**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle buying interest could start to take shape today, but we may not see significant trade volume develop until Thursday or Friday. Look for asking prices to start out around $122 in the South and $192 plus in the North.
Both sides will be monitoring FCE results later this morning for clues regarding the big cash picture. Live and feeder futures are likely to open under pressure this morning thanks to further follow-through selling and long liquidation.