Limited direction is expected as traders return to the complex Thursday morning with market adjustments likely following active hog market support midweek. Mixed trade is likely through most of the morning.
Cattle: Steady Futures: Mixed Live Equiv: Unavailable*
Hogs: Mixed Futures: Higher Lean Equiv: Unavailable**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Firm pressure through the early part of the week in feeder cattle trade has pulled away from six-week highs, causing traders to readjust positions, with market softness possible in the next couple of trading sessions. The upcoming Cattle on Feed report and semi-annual Cattle Inventory reports may cool optimism, which has moved into the feeder cattle complex over the last month. Live cattle trade is expected to remain mixed in a narrow-to-moderate range early Wednesday morning while the overall tone of the market is still expected to carry a firm undertone.
Cash cattle activity is expected to become more active Thursday with bids becoming more evident as the day continues. So far, feedlot managers have held tight to early asking prices of $114 per cwt live and $186 and higher dressed, but this may soften if follow-through pressure develops.