Moderate-to-strong buyer activity is developing through the cattle complex over the last couple of days. This may add even more buyer activity during the end of the week. Hog trade remains unsettled as the back and forth market shifts, adding to the volatility in the complex.
Cattle: Steady Futures: $1 Higher Live Equiv $140.90 +0.75*
Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv $ 82.13 -0.53**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle trade activity has been undeveloped so far this week, but with packers and feeders entering the home stretch once again, the expectation is that swift and quick trade will develop late in the day. Packers and feeders continue to remain well rooted in their positions through the week, limiting additional expectations of a significant shift in direction, in activity or price levels.
Futures trade is expected to open higher once again, although the potential for moderate position-taking is increasing due to the active support in the complex over the last several weeks.