Look for the cattle complex to start out mixed Thursday thanks to residual selling interest and pre-cash short-covering. On the other hand, lean hog futures are likely to open moderately higher, supported by spillover buying and constructive fundamentals.
Cattle: Steady-$2 HR Futures: Mixed Live Equiv: $145.02 – .66*
Hogs: $1-2 HR Futures: 50-100 HR Lean Equiv: $ 86.89 + .39**
* based on formula estimating live cattle equivalent of gross packer revenue |
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle buyers and sellers are likely to resume basic positions defined on Wednesday. That means live bids of $110 and asking prices around $117 to $118. If neither side blinks, significant trade volume will once again be delayed until Friday. Live and feeder futures should open on a mixed basis, thanks to a combination of follow-through selling and short-covering tied to large cash premiums.