Limited activity is expected early Wednesday morning with traders looking for additional longer-term direction and the potential to bring additional support to hog futures.
Cattle: Steady Futures: Mixed Live Equiv: $136.09 -0.78*
Hogs: $1 Higher Futures: $1 Lower Lean Equiv: $ 82.57 +1.55**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Limited cash market activity is expected through the day Wednesday, although packers should step into the market at some point with token bids at least. Initial bids should be near $107 live basis and $168 dressed, although at this point, these numbers are not expected to gain any attention from feedlot managers.
Asking prices are likely to become more evident with prices seen near $114 live and $176 and higher dressed. But most trade may be delayed until Friday, potentially after the release of the Cattle on Feed report. Futures trade is expected to remain mixed with sluggish market interest.
This may spark some additional market activity, but traders seem to be increasingly cautious to move above recent market support, and content to hold prices within a narrow trading range and still hang onto the underlying firm market trend from last week.