Limited interest is likely early Wednesday as traders continue to reposition holdings following the moderate swings in prices over the last few days. Increased demand concerns in hog futures may continue to erode nearby support.
Cattle: Steady Futures: Mixed Live Equiv: $142.45 -0.67*
Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv: $ 86.14 -1.82**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Sluggish cash cattle market interest is expected to develop early Wednesday with increased packer activity likely to develop in most areas through the morning. Bids are expected to start at levels similar with Tuesday with live bids of $109, $175 dressed. Asking prices should hold well above these levels at this point in the week at $112 to $115 live and $185 and higher dressed.
Given the trend for midweek trade over the last couple of months, there is moderate expectation that at least some deals will be reached before the end of Wednesday. But, given the back and forth in futures trade, there seems to be very little urgency to get cash cattle trade accomplished early in the week.
Futures trade is likely mixed with light to moderate interest expected Wednesday morning. The inability for nearby contracts to hold firm early day gains Tuesday afternoon is creating expectations that prices may continue to wander in the moderate trading range seen over the last month. The current $5 trading range gives traders ample room to shift positions without developing any technical market reaction. This range could hold through most of the summer as limited fundamental market changes are expected in the near future.