Strong follow-through pressure in feeder cattle trade late last week has continued to create uncertainty through the entire complex. Hog futures remain in a weaker market tone, as trade direction is likely to be limited through the near future given market volatility.
Cattle: Steady Futures: Mixed Live Equiv $139.53 -1.03*
Hogs: $1 -$2 Lower Futures: $1 Lower Lean Equiv $79.58 -2.42**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Early futures trade is expected to remain sluggish with overall lack of direction seen through the complex following the choppy back and forth movement over the last several days. The strong pressure in feeder cattle futures which developed Friday once again may add even more volatility to the market with prices likely to see additional market shifts over the next several days and weeks.
Cash cattle trade did not develop until late Friday, with prices reported generally steady with last week. At this point, it appears that overall trade remained lighter than the previous week, but there will be more focus on the formulated sales numbers as they are reported on Monday.
Any cash activity that is done Monday is expected to be reserved by show list distribution and inventory taking with bids and asking prices not expected to develop.