Triple-digit gains Tuesday in feeder cattle has the potential to spark additional interest midweek in all cattle markets. Hog futures are focused on maintaining stability at recent high prices.
Cattle: Steady Futures: Mixed Live Equiv: $151.07 +0.69*
Hogs: $1 Higher Futures: Mixed Lean Equiv: $ 78.60 +1.75**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Feeder cattle futures broke through technical support Tuesday with April contracts moving above early-March levels. The move to $147.80 per cwt is the highest contract price since November 2018 and may create additional underlying support through all cattle trade.
Live cattle futures remain stuck in the current market range of $126 to $130 per cwt, but with April contracts moving above $129 per cwt Tuesday, the focus on underlying fundamental support could spark additional buying activity in the next couple of weeks.
Cash trade remains undeveloped early Wednesday morning as bids are still unavailable while asking prices are likely to redevelop at $130 and higher live and $210 dressed. Active trade is likely to be pushed off until late in the week, with another Friday trade becoming a strong possibility.