The cattle complex should open moderately higher, supported by follow-through buying and the potential of premium cash sales Lean hog contracts are also likely to move moderately higher thanks to further short-covering and technical buying.
Cattle: Steady Futures: 50-100 HR Live Equiv: $137.30 – .25*
Hogs: Steady-$1 LR Futures: 50-100 HR Lean Equiv: $ 88.79 – .09
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
It’s “do-or-die-time” in feedlot country once again with cattle buying and sellers running out of time to trade at least moderate numbers before calling it a week. Look for opening bids around $108 live and $173 to $175 dressed, well below asking prices of $115 and $182 to $184. Live and feeder futures seem set to open moderately higher Friday, supported by follow-through buying and the possibility of cash stability.