The cattle complex seem set to open on a mixed basis as traders position before the development of cash business and new monthly on feed data. Lean futures should also start out with uneven price action thanks to further bull spreading and late week ptrofit taking.
Cattle: Steady-$2 LR Futures: mixed Live Equiv: NA*
Hogs: Steady-$1 LR Futures: mixed Lean Equiv NA**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Welcome to another Friday showdown in the cash cattle market. We’re surprised that buyers and sellers have found the ability to hold their breath so long following last week’s limited country movement. But it’s not the first time in this age of large captive supplies chain speed funding is tough to track. At any rate, something will need to happen today in terms of comprise necessary to generate at least moderate trade volume.
Opening bids should start out around $108-110 live and $173-175 dressed. Asking prices in the early rounds should remain firm at $115 live and $183-plus in the North. The June 1 on feed report will be released this afternoon at 2:00 (CDT).
Average. guesses look like this: on feed, up 3-4 percent; placed in May, off 4 percent; marketed in May, up 5 percent. Live and feeder contracts should open mixed as traders jockey ahead of cash news and new on feed data.