Market activity is developing across the entire livestock complex through the week with light trade seen midweek. This is leading up to what could be firming cash market support in cattle trade as packers have yet to actively show their hand.
Cattle: Steady $2 HR Futures: Mixed Live Equiv $132.17 – 0.71*
Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 78.82 – 0.04**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Activity is expected to become more active early Thursday with packers becoming more involved as bids are likely to redevelop early through morning trade with Southern bids likely to be seen at $108 per cwt while Northern dressed bids at $172 to $173 may be seen at midweek. Although feeders may have no interest in these price levels, asking prices will once again be stated at $113 and higher live basis and $176 and higher dressed.
Although active trade may not develop until later in the day, or even sometime Friday, the stage may be set for steady to higher money given the firming of futures trade earlier in the week. Futures are expected to remain mixed to firm early in the session although light activity will most likely encompass most of the morning trade.