Additional follow through pressure is expected to develop through early trade Friday morning as traders continue to back away from the complex after strong pressure swept through the complex Thursday afternoon. Despite the support in cash cattle trade, the weakness in live cattle and lean hog futures is developing in the complex.
Cattle: Steady $2 HR Futures: Steady to $1 LR Live Equiv $132.66 – 0.49*
Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 78.97 + 0.15**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle trade started to develop Thursday afternoon with live cattle trade developing in the South and parts of the North at $111 while dressed trade was reported at $175 per cwt in Nebraska and Iowa.
These prices were generally $2 per cwt higher than last week’s price levels, and has likely set the tone for the week, but the pressure in the futures market may limit overall pressure through the complex. Futures are expected to open weaker given the tone of the market Thursday.