The cattle complex is likely to open mixed as traders jockey ahead of last week’s cash developments. Lean hog issues should also begin with uneven price action in slow volume.
Cattle: Steady-$2 HR Futures: Mixed Live Equiv $139.06 + .60*
Hogs: Steady/Weak Futures: Mixed Lean Equiv $ 85.86 – .28**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
What a difference a week makes in terms of market timing. Last week’s cash business was essentially completed by Tuesday. This week we’ve reached Friday with virtually nothing booked. Whatever explains the contrast, some action will have to surface between now and sunset. Higher futures clearly anticipated that packers will blink before feedlot managers.
Look for opening bids around $118 in the South and $190 in the North. Asking prices should remain firm at $122 to $123 in the South and $195 to $197 in the North. Live and feeder futures should open mixed, tied to follow-through buying and profit-taking.