Limited direction is expected through the end of the week with traders focusing on end of the week positioning and cash market activity rather than any significant market shift.
Cattle: Steady-$2 Higher Futures: Mixed Live Equiv: $142.23 +0.37*
Hogs: $1 Higher Futures: Mixed Lean Equiv: $ 75.10 +0.79**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle business should move into full swing at some point during the day Friday, although the likelihood of late-day trade is developing given the overall lack of market direction in futures trade and sluggish interest so far this week by both packers and feedlot managers.
Asking prices are set to be restated at $125 and higher live and $200 dressed, while packers are likely to step back to the market with bids of $119 live and $192 to start out. Futures activity should remain sluggish through the first couple of hours of trade, with the focus on increased buyer activity late Thursday as traders search for follow-through support with prices near contract highs.
Even though markets have been unable to move higher through the last two sessions, the inability to sustain any market liquidation is pointing to a still strong market trend.