The cattle complex is set to open moderately lower, checked by follow-through selling and long liquidation. Lean hog futures seem staged to begin with mixed price action tied to both residual selling and bullish cash news from the country.
Cattle: Steady/Weak w/Mon Futures: 25-50 LR Live Equiv $141.34 – .25*
Hogs: $1-2 HR Futures: Mixed Lean Equiv $ 84.64 – .08**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Given the unusual round of early-week cash trading, feedlot business seems to be virtually put to bed. We could see a few clean-up deals here and there, but don’t look for much. Any unsold cattle are probably priced around $122 in the South and $193 in the North. Live and feeder futures are staged to open moderately lower, pressured by follow-through selling and long liquidation.