Live and feeder futures should open moderately lower, pressured by follow-through selling and cash uncertainty. Lean hog contracts seem ready to begin on a mixed basis tied to residual selling on one hand and short covering on the other.
Cattle: Steady-$2 HR Futures: 50-100 LR Live Equiv $132.71 – 0.72*
Hogs: $1-2 HR Futures: mixed Lean Equiv $ 79.93 – 0.44**
* 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 slow improve through the day with opening bids reissued at $109 in the South and $173 in the North). Both sides will be closely monitoring the board, as well as checking for news from the FCE later this morning. Asking prices should be around $113 plus in the South and $178-180 in the North. Significant traded volume may not develop until Thursday and Friday.
CME officials announced the posting of 34 loads delivered against spot October live on Tuesday (i.e., 14 new ones; 18 retendered at $2 with 9 reclaimed), at a West Point. Live and feeder futures should open moderately lower, checked by follow-through selling and lower beef cut-outs.