Look for cattle futures to open moderately higher, supported by short-covering, cash premiums and outside markets. Hog contracts should also begin higher with the help of constructive seasonal fundamentals and the possibility of improving Chinese demand.
Cattle: Steady-$2 LR Futures: 50-100 HR Live Equiv: $149.77 – .34*
Hogs: Steady Futures: 50-100 HR Lean Equiv: $ 79.10 -1.48**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Early-week activity in feedlot country should be typically quiet with buyers and sellers focusing exclusively on the distribution of new showlists. Ready numbers are likely to be steady to somewhat larger than last week.
Bids and asking prices are not likely to develop this week until traders can gather some sense of board stability. Live and feeder futures seem likely to open moderately higher thanks to short-covering, cash premiums and outside markets.