Limited activity is expected early Monday with narrow trading ranges expected in cattle trade following cattle on feed and cattle inventory levels meeting early expectations.
Cattle: Steady Futures: Mixed Live Equiv: $137.30 +0.26*
Hogs: $1 Higher Futures: Mixed Lean Equiv: $ 83.38 +1.92**
* 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 likely to remain subdued after light-to-moderate trade trickled into the complex late last week. The underlying tone of the market remains firm as limited optimism is expected through the end of July.
Cash market activity is likely to be limited to showlist distribution and inventory taking with both sides unlikely to be in a hurry to ink deals early in the week. This could delay bids and asking prices until midweek or later. Futures trade is expected mixed to firm in a narrow trading range. Friday’s focus was based on the late afternoon cattle on feed and cattle inventory reports.
Both of these reports showed limited surprises with reports coming in incredibly close to pre-report expectations. Even though total on feed numbers increased 2% from year-ago levels, cattle placed in feed yards fell 2%. Traders are expected to quickly move beyond this report, focusing on underlying technical support developing in the entire livestock and cattle complex as well as emphasis on building demand through the second half of the year.