Live and feeder contracts should open unevenly with nearbys gaining on deferreds. Lean hog issues should also start out on a mixed note with new spot August supported somewhat by the premium status of the cash index.
Cattle: Steady Futures: Mixed Live Equiv: $135.51 – .32*
Hogs: Steady-$1 LR Futures: Mixed Lean Equiv: $ 88.55 – .45**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Look for a typically quiet day in feedlot country with both bids and asking prices poorly defined. We don’t expect to see many hints of cash potential before midweek. Live and feeder futures should open on a mixed basis with nearby issues better supported than deferreds.