Look for hog futures to open significantly higher, supported by impressive cash strength and technical buying. The cattle complex seem set to open on a mixed basis, linked to both follow-through selling and short-covering.
Cattle: Steady/Firm w/Thurs Futures: Mixed Live Equiv: $139.67 -.13*
Hogs: $1-2 HR Futures: 50-100 HR Lean Equiv: $ 73.30 – .04**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Significantly higher packer bids in Kansas and Texas early Thursday sparked decent volume and regional trade volume is probably done for the week. Yet Northern business still needs to find wheels. Look for opening bids around $190 in the face of asking prices around $192 to $194. The April 1 Cattle on Feed report will be released Friday afternoon at 2 a.m. CDT.
Average guesses look like this: on feed, up 7% to 8%; placed in March, off 10%; marketed in March, off 4%. Live and feeder futures should open on a mixed basis thanks to a combination of follow-through selling and pre-cash/Cattle on Feed report short-covering.