Light trade is expected early Monday with traders in the beef complex focusing on additional potential trade in the Japan market following last week’s announcements of full access for beef exports.
Cattle: Steady Futures: Higher Live Equiv: $144.07 +0.38*
Hogs: Steady Futures: Mixed Lean Equiv: $ 90.28 -0.86**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle activity is expected to remain sluggish Monday with limited direction following the underlying pressure that has developed the last couple of weeks. Showlists and inventory taking are likely to be the extent of any market interest through the day Monday, but the recent trend toward midweek sales activity is likely to spark increased interest earlier in the week.
The recent rally in cattle futures should help to add some stability to the cash complex, but traders still remain uncertain given the impact on the trade war with China on the overall economy. Futures are expected to continue higher following the late-week rally.
The announcement last week that Japan had dropped age restrictions on beef exports is expected to help support overall beef exports to Japan. Continued expectations of further domestic demand support and firm trader interest returning to the live cattle complex may help to shift prices off of recent lows.