Market weakness through the end of the week is creating additional market pressure in cattle and hog futures. This could allow for moderate price shifts as traders adjust positions ahead of the long holiday weekend.
Cattle: Steady Futures: Lower Live Equiv: $141.58 +0.31*
Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv: $ 74.68 +0.46**
* 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 has once again made it to Friday without any significant market direction, or indication that packers and feeders will make an effort to come to terms on selling cattle for the week. Packer interest should improve through the morning, although it could be late in the day before there is trade.
Asking prices will likely be at $123 and higher live and $200 to $203 dressed, although given the market volatility in all livestock trade, it is uncertain where markets will shake out by the end of the day. Futures trade is expected to open with a weak undertone following previous sharp losses in feeder cattle, creating market uncertainty through the entire market.
Traders are likely to try to square positions Friday, as overall volume may remain sluggish ahead of the three-day weekend.