Expect live and feeder futures to open higher Monday, supported by encouraging cash and product news that surfaced late Friday. Lean hog issues should also start out in forward gear, boosted by follow-through buying and positive technical consideration.
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $130.85 +1.16 * Hogs: Steady Futures: 25-50 HR Lean Equiv $ 83.05 – .07 **
* based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue
Short-bought cattle buyers finally had to come up for air late Friday, spending as much as $112 in the South ($2 higher than the week before) and $175 in the North (nearly $5 higher than last week’s weighted average basis Nebraska). Given the tardy development of country business, it was tough to get a good handle on volume. Our guess is that the trade was no better than moderate in any area, but we’re anxious to see Mandatory totals later Monday. Activity
Monday will be typically slow as traders limit efforts to the distribution of new showlists. Ready numbers should be about steady with last week. Look for initial asking prices to be around $115 plus in the South and $178 to $180 in the North. Cash trading could be both early developing and abbreviated this week as players attempt to wrap things up as soon as possible ahead of the Christmas holiday. Look for cattle futures to open solidly higher Monday, supported by residual buying energy and constructive fundamentals.