Moderate buyer support is expected to redevelop Tuesday morning following a strong upward market shifts early in the week. This could help to bring additional buyer support to all nearby contracts. This may add longer-term support to develop in most futures.
Cattle: Steady Futures: $1 Higher Live Equiv $140.45 +0.92*
Hogs: Steady to $1 Lower Futures: $1 higher Lean Equiv $ 81.85 +2.27**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Initial live cattle futures trade is expected to draw a combination of follow-through buyer support and narrow position-taking. This could create additional market shifts during the morning while future are expected to see some follow-through buyer interest, which helped to post strong gains Monday.
The strong upward market support in outside markets is likely to spark some additional trade activity, but the focus on potential technical support and changes in market fundamentals could bring some increased overall activity coming from outside markets. With April live cattle futures moving back to $125 per cwt, some increased buyer support may move back into the complex.
Cash cattle trade is undeveloped with traders are looking packers to show increased activity following the lighter trade activity last week. So far, there is no development of bids or asking prices, but this could change near midweek, although early activity Tuesday is likely to still be undeveloped.