Live and feeder futures should open lower thanks to follow-through selling, though contracts could firm later in the day given evidence of relative cash stability. Lean hog contracts will likely open lower, pressured by residual selling and ongoing trade war fears.
Cattle: Steady Futures: 50-100 LR Live Equiv: $137.55 — .30*
Hogs: Steady-$1 LR Futures: 50-100 LR Lean Equiv: $ 88.88 — .50**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle-buying interest should start to show a little more life Thursday with preliminary bids of $108 live and $173 to $175 dressed. While nominal asking prices are around $114 to $116 live and $182 to $184 dressed, it goes without saying that the board’s bearish struggles have been eating away at country psychology.
If futures manage to stabilize to some extent, significant trade volume could easily be delayed until Friday. Live and feeder futures seem likely to open moderately lower, pressured by follow-through selling and worrisome midsummer beef demand.