Strong pressure in cattle trade Tuesday is expected to bring a mixed bag of follow-through selling and short-covering when markets open Wednesday morning. This may swing prices in a moderate-to-wide range in early activity.
Cattle: Steady Futures: Mixed Live Equiv: $144.08 +0.62*
Hogs: Steady Futures: Mixed Lean Equiv: $ 74.21 -1.20**
* 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 are expected to remain silent or nearly silent through most of the day Wednesday with packers not expected to quickly move into the market until later in the week. This could keep markets uncertain with cash trade potentially put off until sometime Friday once again.
It is likely that asking prices may start by midday, although this is not expected to bring about any action. Initial trade in live cattle futures is expected to remain mixed with a combination of follow-through selling pressure and short-covering through the morning.
Outside market shifts will once again play a significant role in overall direction of the market and participation by commercial and investment traders.