Following late day pressure Monday, traders continues to focus on technical market weakness in all livestock markets, creating additional uncertainty with traders searching for market support.
Cattle: Steady to Lower Futures: Mixed Live Equiv: $145.85 -0.14*
Hogs: Lower Futures: Lower Lean Equiv: $ 76.72 -1.41**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Limited cash market direction is expected Tuesday with bids and asking prices likely to remain unavailable at least through the first half of the day. Trade will likely be delayed until midweek or later, but the bearishness in futures could spark trade if weakness continues the next couple of weeks.
Markets remain at a significant discount without a fundamental basis for the pressure in the complex. If further losses develop in the next couple of weeks, feeders may cut losses in response to further cash market pressure.
Futures trade is expected mixed in a narrow-to-moderate range, but this does not overshadow the bearish technical signal in nearby contracts as October futures slipped to $94.20 per cwt, and broke through long-term support levels of $94.45 in late day trade Monday. This sets the next support level near $90 per cwt, limiting short-term market optimism in the complex.