Hog paper seem set to open moderately lower, checked by follow-through selling and struggling carcass values. On the other hand, the cattle complex should begin with mixed prices thanks to a combination of residual buying and pre-cash long liquidation.
Cattle: Steady-$2 LR Futures: Mixed Live Equiv $131.83 – .21*
Hogs: $1-2 LR Futures: 50-100 LR Lean Equiv $ 94.64 -1.42**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash market should slowly start to take shape at midweek thanks to greater definition of both bids and asking prices. That’s not to say that significant trade volume couldn’t be delayed until Thursday or Friday. Look for FCE results to be posted on the cash cattle page later Wednesday.
Asking prices should be around $110 to $112 in the South and $178 plus in the North. Live and feeder futures are expected to open on a mixed basis thanks to a combination of spillover buying and midweek long liquidation.