Lean hog futures are expected to open under pressure thanks to defensive fundamentals. On the other hand, look for live and feeder cattle futures to open on a mixed basis as traders jockey ahead of the Oct. 1 Cattle on Feed report.
Cattle: Steady-$1 LR Futures: Mixed Live Equiv: $135.75 +1.16*
Hogs: Steady-$1 LR Futures: 50-100 LR Lean Equiv: $ 83.15 – .40*
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
The cash cattle trade should be completed through the day with southern buyers and sellers looking for compromise between $111 and $114. The Oct. 1 Cattle on Feed report will be released Friday at 2 p.m. CT. Generally speaking, USDA numbers are expected to be bearish as feedlot numbers swell compared to 2017.