Live and feeder contracts should open some lower Thursday morning, checked by defensive wholesale beef prices and uncertain cash prospects. Lean hog futures are also likely to begin on the defensive tied to follow-through selling and seasonally bearish fundamentals.
Cattle: Steady Futures: Mixed Live Equiv: $142.43 – .94*
Hogs: Steady-$1 LR Futures: 50-100 LR Lean Equiv: $ 77.70 -1.33**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Once again, it appears that the cash cattle trade will not fully develop until the tail end of the week. Look for opening bids around $180 dressed in the North and $113 in the South. Asking prices should be restated close to $182 to $185 in the North and $118 in the South. Live and feeder futures are expected to open moderately lower Thursday as traders cautiously await reliable signs of late-week cash potential.