The cattle complex should open solidly higher, supported by stronger feedlot sales on Friday and technical buying interest. Lean hog issues are also likely to begin Monday with a firm undertone thanks to the premium status of the cash index and late-week carcass value strength.
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $138.54 – .52*
Hogs: Steady Futures: 50-100 HR Lean Equiv $ 86.63 + .77**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
If the government shutdown persists this week, market reporting will be quite challenging. We’ll do our best to pass on information from private sources regarding cash cattle and wholesale beef sales, but the market picture will remain quite fragmented and certainly tough to compare with last week. It remains to be seen how futures will react to the lack of price monitoring by the USDA. Lets hope Washington finds a way to get things plugged back in as soon as possible.