Live and feeder futures are likely to open at least moderately higher, supported by follow-through buying, rising carcass value, and cash optimism On the other hand, lean hog contracts should begin with mixed price action in relatively slow volume.
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $136.72 + $1.72* Hogs: Steady-$1 LR Futures: mixed Lean Equiv $87.52 + 0.18**
* 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 buying interest should start to slowly develop today with the week’s first bids evident here and there. Yet significant trade volume may not develop until Friday, especially if asking prices stay firm around $118-plus in the South and $185-187 in the North. Live and feeder futures should open on a firm basis, supported by residual buying interest and encouraging fundamentals.
