Follow-through pressure is expected through early trade Thursday morning. The widespread outside market losses continues to erode underlying commercial support across the livestock complex.
Cattle: Steady Futures: $1 Lower Live Equiv: $133.81 -0.52*
Hogs: Steady Futures: $1 Lower Lean Equiv: $ 84.21 +0.14**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Additional direction is expected in the cash cattle trade through the day Thursday. The development of limited activity in the North at $174 per cwt may be enough to get the ball rolling later in the week, but it may not be enough to totally set the market trend.
Activity through the South remains undeveloped as active interest may be delayed until later Thursday or sometime Friday. Futures trade is expected to erode further as traders focus on the recent widespread tumble in outside markets. This lack of support is expected to weaken the entire complex over the near future.