Limited interest is expected in cattle futures early Wednesday as traders continue to hold prices in a narrow-to-moderate range. Early follow-through pressure is likely in hog trade, although the potential for short-covering is quickly developing.
Cattle: Steady Futures: Mixed Live Equiv: $153.19 -0.49*
Hogs: Steady to $1 Higher Futures: Lower Lean Equiv: $ 93.81 +1.06**
* 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 still remains quiet, but given the limited activity over the last month, especially in the South, it is hard to rule out the development of at least limited trade midweek. This could spark some additional market activity through futures trade after choppy market direction has developed in the last couple of sessions.
Bids are expected to remain quiet until at least later in the day, with asking prices holding at $130 live and $212 dressed. The overall limited interest is expected to be carried in live cattle and feeder cattle futures trade through the morning.
Although there is potential for increased additional softness to develop, markets still remain well rooted in the sideways trading range, allowing for light-to-moderate short-covering to develop during morning trade. This may add some additional late-week support to all cattle markets.