Hog futures are expected weak early Friday morning, although end-of-the-week positioning is expected to develop with traders focusing on bringing some stability to the weakening complex.
Cattle: Steady Futures: Mixed Live Equiv: $134.12 -0.31*
Hogs: $1 Lower Futures: $1 Lower Lean Equiv: $ 83.62 -0.59**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle trade may be done for the week following light to moderate trade in all areas that developed Thursday afternoon. Live trade is fully steady with last week at $111 per cwt while dressed trade is seen at $173 to $174 per cwt, which is $1 to $2 per cwt lower than last week, and generally $1 per cwt lower than the previous day.
Futures trade is expected to remain sluggish with a combination of short-covering, especially in deferred contracts, while the general weaker tone could add some additional uncertainty to the market and allow pressure to redevelop at the end of the week.