Lean hog issues are set to open higher Friday, supported by follow-through buying and late-week short-covering. On the other hand, cattle paper should start out lower, checked by residual selling interest and lower feedlot sales in the North.
Cattle: Steady-$1 LR Futures: 50-100 LR Live Equiv: $137.06 – .09*
Hogs: $1-2 LR Futures: 50-100 HR Lean Equiv: $ 76.50 + .48**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
The cash cattle trade in the North seems to be essentially done for the week with most live sales $2 to $3 lower than last week’s weighted average basis Nebraska. Dressed business ranged from $175 to $179 with most deals marked around $177 to $178, steady to $1 lower than last week’s weighted average in Nebraska.
By contrast, cash activity in the South has not yet gotten off the ground. That will have to change sometime Friday. Look for opening bids around $110, roughly $5 below most asking prices in Kansas and Texas. Live and feeder futures should open moderately lower thanks to follow-through spending and weaker feedlot sales on Thursday.