Light early trade volume is expected as traders continue to assess the fundamental support this week. Mixed trade is likely early in the session until additional volume trickles into the complex.
Cattle: Steady Futures: Mixed Live Equiv: $154.24 +0.86*
Hogs: 50 cents higher Futures: Mixed Lean Equiv: $ 91.90 +1.33**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle interest is expected to remain sluggish most of the day Tuesday with bids and asking prices still undeveloped at this point. It is likely that additional interest will slowly trickle into the complex midweek. The potential for early-week trade on Wednesday for the fourth week in a row is actually pretty good this week due to Friday being a market holiday with both sides being willing to wrap up cash business early this week.
Futures trade is expected to remain generally sluggish Tuesday following slow but steady market firmness the past couple trading sessions. Even though the market remains stuck in the wide sideways trend, the focus on current supplies and the ability to meet growing seasonal beef demand is likely to help keep buyers interested through April, although at most times not overly aggressive.