Live and feeder futures should open moderately higher, supported by follow-through buying and short-covering. Lean contracts seem staged to open some lower, checked by long liquidation and eroding carcass value.
Cattle: Steady w/Wed Futures: 50-100 HR Live Equiv $137.82 – .92*
Hogs: $1 LR Futures: 25-50 LR Lean Equiv $ 85.82 -1.18**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Moderate trade volume surfaced in most areas of cattle-feeding country at midweek. Another light round of scattered clean-up deals is possible Thursday and/or Friday. Look for opening bids of around $119 to $120 live and $188 to $190 dressed. Live and feeder futures seem set to open moderately higher, supported by follow-through buying and short-covering ahead of Friday’s Cattle on Feed report.