Follow-through support is expected to move into hog futures following sharp triple-digit gains Thursday. The focus across the complex will be on the plethora of backlogged reports to be released Friday, which could create mixed messages through the complex.
Cattle: Steady Futures: Mixed Live Equiv: $144.79 +0.58*
Hogs: Steady to $1 Lower Futures: Higher Lean Equiv: $ 65.65 +1.06**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Up until now, cash cattle trade has been illusive as packers and feeders have held respective price levels with little movement or desire to meet in the middle. Packers remain short-bought and are expected to need to make adequate sales in order to fuel next week’s procurement levels, but with recent support in futures trade and consistent beef demand, feeders are shooting for higher prices Friday.
Bids and asking prices are expected to redevelop within the same range as earlier in the week, but active trade may not develop until late in the day. Futures movement is expected to remain mixed with traders not only trying to adjust to previous market shifts, but trying to assess the meaning and take home message of all of the backlogged report data that will be available throughout the day.
With export data and Cold Storage reports covering multiple weeks and months, it is going to be a challenge sorting out what is still meaningful to the market during late February.