The combination of end-of-week positioning and the upcoming cattle on feed report that will be released Friday afternoon is expected to bring additional market volatility to the entire livestock complex.
Cattle: $2 Lower Futures: $1 Lower Live Equiv $146.26 +0.40*
Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv $83.78 -0.03**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Light trade activity is expected to be seen early Friday morning, although the tone of the market continues to be focused on the previous market pullback that may add even more softness to trade through the morning. There is also expected to be some pre-report positioning ahead of the cattle on feed report in both live cattle and feeder cattle trade.
Cash markets appear to be well established with prices steady to $2 per cwt lower. It appears that more cattle will likely still need to be sold given the trickle of trade over the last few days. But unless something major is seen across the complex or in the cattle on feed report, prices appear to be set.