Hog futures seem set to open significantly lower, further pressured by struggling fundamentals. The cattle complex should begin some higher with the help of follow-through buying and cash premiums.
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv: $137.15 + .18*
Hogs: $1-2 LR Futures: 100-200 LR Lean Equiv: $ 76.02 -1.08**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Look for the cash cattle trade to take on greater definition Thursday, both in terms of bids and asking prices. Look for buyers to start out around $110 on a live basis, which is about $5 under asking prices. Live and feeder futures seem set to open some higher as specs and producers anticipate cash strength by week’s end.