Look for the cattle complex to open moderately lower, checked by follow-through selling and lackluster beef demand. On the other hand, hog futures should open higher thanks to stronger carcass value and ideas of seasonal market strength later this spring.
Cattle: Steady-$2 HR Futures: 50-100 LR Live Equiv: $140.18 – .29*
Hogs: $1-2 HR Futures: 50-100 HR Lean Equiv: $ 73.03 +1.82**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
The cash cattle trade is expected to remain poorly tested Tuesday with both buyers and sellers monitoring the board for greater definition of price potential. Chain speed is expected to slowly accelerate this week, possibly totaling as much as 615,000 head.
Needless to say, more tonnage on the street will necessitate greater demand to keep feedlot cash on a steady/firm keel. Live and feeder futures seem likely to open moderately lower, checked by Monday’s late sell-off.