Trade is expected to remain sluggish Wednesday morning with limited follow-through buying mixed with midweek position-taking following the wide market swings over the last several trading days.
Cattle: Steady Futures: Mixed Live Equiv: $144.79 +0.14*
Hogs: Steady to $1 Lower Futures: Lower Lean Equiv: $ 88.77 -0.30**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Activity levels in cash cattle trade are likely to remain subdued through the morning Wednesday with bids and asking prices expected to be more defined through the day. Given the overall lack of interest developing Tuesday and wide market swings in futures trade early in the week, it is uncertain how active feedlot managers will be to sell cattle early in the week.
Even though the trend has move toward midweek sales in the South, it would not be surprising that the volatility through cattle trade may push deals back until Thursday or Friday. Packers are expected to show more interest through the week, although at this point, it is uncertain how aggressive bids will be as they continue to remain committed to limited spending given the overall lack of movement in beef values.
Futures trade is to be expected mixed with moderate follow-through buying trickling into nearby live cattle trade. Feeder cattle futures, which posted strong triple-digit losses Tuesday in reaction to double-digit corn market gains, are likely to remain generally weak as traders try to adjust to increased production costs.