Cattle paper seems likely to open on a mixed basis thanks to a combination of light bull-spreading and profit-taking. Lean hog futures should also open with uneven price action with deferred losing more ground to nearby.
Cattle: Steady w/Wed Futures: Mixed Live Equiv $137.84 + .30*
Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 79.31 -1.23**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Moderate trade volume surfaced in serval areas of cattle-feeding country on Wednesday, in large part thanks to hedgers moving to take advantage of strong basis opportunity. Live sales in the South ranged from $117 to $118, steady to $1 lower. Dressed business in parts of Nebraska were tagged at $188, about $1 lower than last week’s weighted average basis Nebraska.
It will be important to check Mandatory totals issued at midday to get a better handle on how much ready cattle remains to be traded this week. Asking prices should be around $120 in the South and $193 to $195 in the North. Live and feeder futures are geared to open mixed in light volume.