Look for the cattle complex to adjust moderately higher on the opening, cautiously supported by short-covering/profit-taking and pre-report positioning. Lean hog futures should open narrowly mixed in low volume.
Cattle: Steady w/Wed Futures: 50-100 HR Live Equiv $149.45 + .34*
Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 76.52 – .62**
* 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 volume surfaced again in the northern tier of cattle-feeding country with dressed and live prices about $2 lower than last week (mostly $203/$126), though close to steady with Tuesday. While clean-up action is possible Thursday and Friday, we suspect the lion’s share of cash business is done for the week.
The balance of showlists are priced around $125 to $126 in the South and $204 plus in the North. Live and feeder futures should close moderately higher, initially supported by short-covering and interest in correcting oversold charts.