Live and feeder cattle futures are expected to open on a mixed basis thanks to a cautious combination of follow-through buying and cash uncertainty. Lean hog contracts should also begin with uneven prices tied to residual selling and light short-covering.
Cattle: Steady Futures: Mixed Live Equiv $130.84 – .18*
Hogs: $1-2 LR Futures: Mixed Lean Equiv $ 87.36 – .04**
* 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 clock is starting to tick louder. With packer margins tightening and board premiums holding firm, buyers and sellers could he headed for another Friday showdown. Bids Thursday should be restated at $102 to $103 in the South and $162 to $164 in the North.
At the same time, asking prices will again be underscored around $107 to $108 in the South and $170 in the North. Live and feeder futures seem geared to open on a mixed basis with follow-through buying on one hand and nervous cash prospects on the other.