Firm gains developing in lean hog trade Midweek is expected to spark follow-through buyer support as traders focus on potential upcoming trade talks with China and hopes that this will improve the chances of a trade deal over the near future.
Cattle: Steady Futures: Mixed Live Equiv $142.97 +0.52*
Hogs: Mixed Futures: Mixed Lean Equiv $82.68 -3.46**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle trade remains quiet Thursday morning with just a few cattle sold midweek. This is not enough to establish a market trend with overall activity near a standstill. Trade will pick up over the next two days, as packer interest is likely to improve during the day Thursday. Initial bids are likely to develop in the same range as before, at $109 live and $180-plus on a dressed basis.
Asking prices remain firm at $112 to $115 live and $185 and higher dressed. It is not unlikely that active trade will be pushed into late Friday at this point given the recent movements in futures and wholesale beef values. Firm underlying pressure seen midweek is likely to leave trade mixed with a combination of follow through pressure and short covering developing during morning trade.
Limited volume is expected early Thursday, which could allow for wide market price levels until additional interest moves into the complex.