Strong triple-digit losses Monday is likely to limit buyer support early in the Tuesday session. This could leave markets lightly traded, bringing additional volatility to the complex.
Cattle: Steady Futures: Mixed Live Equiv: $153.68 +0.81*
Hogs: Steady Futures: Lower Lean Equiv: $ 92.75 +0.81**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle trade is expected to remain sluggish Tuesday morning with limited interest in asking prices or bids. The firm cash market support last week should spark some additional underlying momentum from feedyard managers, although underlying softness in futures trade could limit market potential. The recent developments of midweek trade may spark some additional interest the next couple of days, but most activity may still be delayed until the second half of the week. Futures trade is expected mixed to moderately lower following firm pressure in live cattle and feeder cattle trade. This could bring additional momentum back into the complex the next couple of days, but price volatility is likely on Tuesday.