Light activity is expected to redevelop during early-week trade although limited volume is likely during the first couple of hours. Initial market direction is likely to be hard to pin down due to follow-through buying and position taking developing in lean hog and live cattle trade.
Cattle: Steady Futures: Mixed Live Equiv: 136.80 -0.63*
Hogs: Mixed Futures: Higher Lean Equiv: $76.51 -0.48**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle interest is expected to remain undeveloped Monday morning following light trade that trickled into the complex late last week. With firm cash price developing by the end of last week, further support is expected as the month progresses. Showlist and inventory taking will be the main agenda Monday with most trade expected to be pushed to the last half of the week. Futures trade is expected to open mixed following limited end-of-the-week support in live cattle while feeder cattle futures focus on the short-term correction last week.
This may allow for additional trade adjustments through the morning until volume increases. A firm underlying tone continues to develop in live cattle trade, focusing on firm outside market support that has developed in the last couple of weeks. This is likely to spark renewed expectations of stronger longer-term beef demand as expectations of overall supportive markets continue to develop the next couple of months.