Expect the cattle complex to open Friday morning in slow gear with mixed prices. Action in lean hog futures should be equally sluggish and directionless as traders position ahead of the weekend break.
Cattle: Cash Steady w/Wed Futures Mixed Live Equiv $137.40 – .42*
Hogs: Cash Steady-$1 LR Futures Mixed Lean Equiv $85.74 – .08**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Look for the cash cattle market to be very limited through the day. We see a few clean-up deals here and there, but for the most part the country trade seems to be done for the week. The November 1 Cattle on Feed report scheduled for release Friday afternoon will most probably be bearish in terms of fed cattle supplies.
“How bearish?” may be the only question in play. Averages guesses look like this: on feed, up 5% to 6%; placed in October, up 7% to 8%; marketed in October, up 5%. Live and feeder futures are staged to open on a mixed basis as traders position before official on feed news.