Ahead of Friday’s cattle reports, live cattle and feeder cattle are expected to be mixed with traders adjusting positions. Firm market support is expected through the end of the week.
Cattle: Steady Futures: Mixed Live Equiv: $137.04 +0.40*
Hogs: $1 Higher Futures: Higher Lean Equiv: $ 81.46 +0.12**
* 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 is expected to develop, although the tone appears to be set, following trade the last two days with prices steady to $1 per cwt lower than last week. It is likely that most trade will be done for the week, although with the release of two major cattle reports at the end of the day, any additional cash cattle trade could be delayed until after 2 p.m.
Live cattle futures are expected to remain mixed during early trade with limited follow-through pressure developing in nearby contracts. An attempt for end of the week short-covering could push prices higher through morning trade.
The heat wave sweeping across the country will continue through the end of the week in most areas, which will add heat stress to most cattle operations. At this point, the impact of this heat or any expected production or death losses is not having an impact on live cattle or feeder cattle markets. Market interest concerning weather conditions could be muted in the near future, but if grain markets start to focus on potential production losses once again, feeder cattle trade could see additional pressure.