Firm support is expected to redevelop early Wednesday morning across nearby contracts. The buyer activity seen Tuesday has sparked underlying commercial support based on short-term demand expectations.
Cattle: Steady Futures: Higher Live Equiv: $141.10 +0.17*
Hogs: Steady to $1 Higher Futures: Mixed Lean Equiv: $ 74.91 -0.86**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Limited activity is expected in cash cattle through the first half of the day with traders focusing on additional outside market shifts and the potential to push futures prices higher. Packer interest remains unavailable, but should start to improve in the next day. Asking prices are still hard to pin down with feeders focusing on the potential moves in futures trade, in order to not leave anything on the table at the end of the week.
Futures trade is expected to remain generally firm with follow-through gains developing in nearby contracts as the recent support, which pushed contracts to new contract highs, is helping to add additional underlying buyer interest. Deferred contracts remain uncertain following the inability to sustain early Tuesday gains.