Follow-through buyer support is expected to slowly but firmly develop across lean hog futures trade. Initial activity is likely to remain sluggish with limited volume in all livestock trade through most of the morning.
Cattle: Steady Futures: $1 Higher Live Equiv $144.84 +2.03*
Hogs: Steady to $1 Lower Futures: $1 Higher Lean Equiv $ 84.80 +1.36**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Light-to-moderate trade activity is expected to redevelop early Wednesday morning in all live cattle and feeder cattle futures. The mixed moves early in the week helped to draw some additional follow-through support to nearby contracts. Deferred contracts have limited market direction and a growing uncertainty as to just how strong the buyer support will be over the near future.
Some additional longer-term activity is likely, which may help bring additional support back to the table. Cash cattle trade is undeveloped. This may improve through the day, but active trade is still expected to be pushed off until sometime Thursday or Friday.