The cattle complex is staged to open with uneven prices thanks to residual selling and short covering. Look for hog contracts to also start out on a mixed basis linked to follow-through buying on one hand and hog market worries on the other.
Cattle: Steady-$2 HR Futures: mixed Live Equiv $135.00 + 0.92* Hogs: Steady-$1 LR Futures: mixed Lean Equiv $87.34 + $1.09 **
* based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
Cattle price potential at midweek should remain poorly defined with both sides closely monitoring the board for significant direction. Significant trade volume could easily be delayed until Thursday or Friday. Live and feeder futures are expected to open on a mixed basis this morning thanks to both follow-through selling and recent feedlot premiums.
