Market interest is expected to remain extremely sluggish Friday ahead of the three-day holiday weekend. Mixed trade is expected early in the session with cattle traders attempting to adjust to the upcoming cattle on feed report.
Cattle: Steady to $2 Lower Futures: Mixed Live Equiv $143.79 +053*
Hogs: Steady Futures: Mixed Lean Equiv $87.63 -2.21**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Following moderate trade over the last two days, cash cattle markets appear to be essentially done for the week. Although the potential for some clean up trade may develop, the tone of the market is expected to be set with prices at $114 to $116 live and $184 to $185 dressed.
Generally cash prices for the week were steady to $2 per cwt lower depending on the area of the country and delivery terms for cattle sold. Futures trade is expected mixed as traders adjust to outside markets early Friday but quickly turn attention to the upcoming cattle on feed report where pre-report expectations point to a strong shift higher in overall cattle in feedyards as well as increased placement levels.
If the report is anywhere near the early estimates, a bearish tone is expected to hover through the complex. A portion of this bearishness has already been worked through market prices, but increased volatility early next week may quickly develop.