Follow-through buyer support is expected to quickly step back into the market following the long holiday weekend. This will likely be met by some position-taking as traders try to adjust longer-term trends through the end of the month.
Cattle: Steady Futures: Mixed Live Equiv: $142.30 +0.72*
Hogs: Steady Futures: Mixed Lean Equiv: $ 74.55 -0.13**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle markets will remain at a standstill through the day Tuesday with limited interest shown Monday due to the Martin Luther King Jr. holiday, which kept markets closed. Continued focus on showlist distribution and inventory taking will be seen, although bids and asking prices are expected to remain nonexistent for the next couple of weeks.
Following steady trade levels with light to moderate activity late last week, the focus on market stability and outside market direction will play a significant role in the development of cash market trade, which is likely to be pushed off until Thursday or Friday.
Futures trade is expected to remain mixed in light activity with limited interest seen through the complex. This could add some additional volatility to the market following shifts seen late last week. Traders are also focusing on the potential of increased beef value support, which may bring additional underlying support to the still firm live cattle trade.