Live and feeder futures should open solidly higher, supported by evidence of cash market strength and technical buying. Lean hog contracts seem likely to open with mixed action tied to spreading interest and early-week profit-taking.
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv: $140.47 – .15*
Hogs: $1 HR Futures: Mixed Lean Equiv: $ 71.21 + .24
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Feedlot business will typically be in prep-mode Monday as both sides focus exclusively on the distribution of new showlists. We expect showlists to be steady to somewhat larger than last week. Asking prices will be slow to develop with producers closely monitoring the board potential. Live and feeder futures should open at least moderately higher supported by greater packer spending on Friday and technical buying interest.