Live and feeder futures should open moderately lower thanks to follow-through selling and cash uncertainty. On the other hand, lean hog contracts seem ready to open on a mixed basis tied to a combination of residual buying and profit-taking.
Cattle: Steady-$2 HR Futures: 10-30 LR Live Equiv $128.17 + .04*
Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 80.68 – .63**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
The cash cattle trade remains in slow motion Thursday. Wednesday’s market was limited to action on the internet. The Fed Cattle Exchange auction sold 3,249 steers and heifers with a weighted average price of $110.47, $.19 higher than the previous price. We could start to see a few preliminary country bids Thursday, but don’t be surprised if significant trade volume is delayed until Friday.
Some asking prices are around $114 to $115 in the South and $176 to $178 in the North. Live and feeder futures seem staged to open moderately lower, checked by follow-through selling and cash uncertainty.
