Early trade is expected to remain mostly lower with a combination of follow-through liquidation and short-covering Thursday. This may bring additional volatility through the end of the week.
Cattle: $2 to $3 LR Futures: Lower Live Equiv Unavailable*
Hogs: Steady-$1 LR Futures: Mixed Lean Equiv Unavailable**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Light to moderate trade developed in Nebraska through the afternoon Wednesday with prices seen at $187 to $188 per cwt. This is generally $2 to $3 per cwt lower than last week’s price levels, and could limit additional buyer support over the near future, although trade is expected in other areas through the rest of the week.
Even though the amount of cattle sold may not set the tone for the market, given overall market conditions, it is likely that the limited trade activity at $117 per cwt will potentially set the market unless a wide market shift develops in futures trade. Futures are expected to continue to move lower through the morning with the aggressive sell-off in both feeder cattle and live contracts creating limited support.