Live and feeder futures should open at least moderately higher, supported by follow-through buying and improving beef demand. Lean hog contracts should open mixed thanks to residual selling on one hand and short-covering on the other.
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv: $141.94 +1.59*
Hogs: Steady-$1 HR Futures: Mixed Lean Equiv: $ 72.76 – .04**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Look for another slow round in the cash cattle market. Bids and asking prices are likely to remain poorly defined with both sides closely monitoring the bullish tone of live futures for clues regarding cash potential.
We expect live cattle to be priced around $125 or better, yet significant trade volume may not surface until the second half of the week. Live and feeder futures seem geared to open moderately higher, supported by bullish momentum and firming carcass value.