The cattle complex is likely to open with uneven price action thanks to uncertainty surrounding late-summer beef supply and demand. Lean hog futures should also open on a mixed basis as attention shifts from pre-Labor Day fundamentals to speculation surrounding international trade, and back again.
Cattle: Steady Futures: Mixed Live Equiv: $141.13 +1.34*
Hogs: Steady-$1 LR Futures: Mixed Lean Equiv: $ 72.22 + .41**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle potential will remain quite limited Tuesday with both bids and asking prices poorly defined. Our guess is that significant trade volume may not develop until the second half of the week. Live and feeder cattle should open on a mixed basis thanks to a combination of short-covering and long liquidation.