Firm follow-through support is expected to develop through cattle futures early Monday. This support is expected to establish contract highs in nearby contracts once again.
Cattle: Steady Futures: Higher Live Equiv: $143.63 -0.60*
Hogs: Steady to $1 Lower Futures: Lower Lean Equiv: $ 69.32 -0.39**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Firm buyer support quickly moved into cattle trade late last week. This not only helps to drive additional longer-term support into the complex, but the firming cash market activity from late last week has helped to push nearby contracts back near contract highs. Firm support is expected to develop in the early minutes of trade Monday, although volume is expected to remain light with limited interest following the weekend break.
Cash markets are expected to remain quiet through the day with showlist distribution and inventory-taking likely to be the only order of business. The firming late-day support in cash markets Friday should stimulate general market optimism, although both sides will be looking for confirmation on how many cattle were actually sold last week.