Little activity is expected to develop early in the complex with traders focusing on the choppy market shifts that started to develop after the early-week rally. The lack of long-term direction in the complex continues to cause some concern of follow-through liquidation.
Cattle: Steady Futures: Mixed Live Equiv $139.88 +0.57*
Hogs: Steady to $2 Lower Futures: Mixed Lean Equiv $ 82.64 +0.79**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Little to no activity is expected in cash cattle trade early Wednesday morning, although packer interest may start to become more evident through the day. The development of the Fed Cattle Exchange Auction will take place Wednesday, although unless a significant change is seen in overall cattle offered or cattle sold on the exchange, this will not be a major focus of cash market activity. Active cattle sales are likely to hold off until the end of the week once again. Futures trade is expected to remain mixed in light early-morning trade and will likely be stuck in a narrow range.