Look for the cattle complex to open on a mixed basis thanks to a combination of long liquidation and short-covering. Lean hog issues should also open with uneven price action in slow trade volume.
Cattle: Steady Futures: Mixed Live Equiv $139.66 – .37*
Hogs: $1 LR Futures: Mixed Lean Equiv $ 86.58 – .53**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Expect a typically quiet Tuesday in the cattle trade with neither bids nor asking prices well defined. Feedlot managers would obviously like to hold the cash line, but defending basis strength this close to Thanksgiving may be tough. Producers will be reluctant to price cattle this week before they get a better sense of board strength. Live and feeder futures should open narrowly mixed Tuesday with neither buyers nor sellers showing a great deal of determination.