Light to moderate pressure is expected early Wednesday, despite limited volume may keep trade mixed in a narrow to moderate range. Most of the focus Wednesday will be shifted to the grain complex as traders look toward the USDA crop production and supply and demand reports.
Cattle: Steady Futures: Mixed Live Equiv $137.16 -0.26*
Hogs: $2 Higher Futures: Lower Lean Equiv $74.19 +1.39**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Limited cash cattle activity is expected to be seen early Wednesday morning. Bids are expected to be refloated in several areas with prices likely to be $168 to $170 per cwt, which is the same range as seen Tuesday. Even with bids becoming more evident through the day, asking prices are not fully defined as of yet, and likely to push active sales off until later in the week.
The focus in futures trade is likely to be placed on the developments surrounding the USDA supply and demand reports, with grain markets taking a more prominent role, and allowing livestock markets to wander in a potentially mixed range once again.