Lack of aggressive price pressure is expected to help draw additional but light buying back into the complex at the end of the week. Limited market activity will likely continue over the Friday session.
Cattle: Steady Futures: Mixed Live Equiv $134.47 -0.55*
Hogs: Steady-$1 LR Futures: Higher Lean Equiv $ 88.42 +0.43**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle trade appears to be generally in the books following another round of light to moderate trade activity that developed Thursday. Trade for live cattle basis traded from $115 to $118 per cwt, although most trade was seen in the $117 per cwt range. Dressed trade in the North remained light, although prices remained steady with previous activity through the week with prices at $186 to $188 for the week.
Futures trade is expected to remain light early Friday morning with the focus on market stability and squaring positions at the end of the week. The mixed activity, which developed late Thursday, is likely to draw additional buyer support into the market early in the session, although the tone of the market remains weak.