Live and feeder contracts seem set to open moderately higher, supported by late week profit taking and cash market premiums. Lean futures should start out some higher this morning as spec and commercials take profits before the weekend break.
Cattle: Steady w/Thurs Futures: 50-100 HR Live Equiv $142.02 + 0.89*
Hogs: Steady Futures: 25-50 HR Lean Equiv $85.55 – $1.46**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
Thanks to yesterday active round in the North (i.e., when steers and heifers sold $200 dressed and $126 live), cash business is probably done for the week. We could see a new scattered clean-up deals here and there, but late week prices are not likely to change. Any unsold cattle still up for grabs are prices around $126 in the South and $202 in the North.
As we get ready to wrap things up, it’s been another amazing week of great cash strength and sorry board weakness. Live and feeder futures could open higher tied to late week short covering and tall cash premiums. Of course, as we’ve been repeatedly reminded this week, opening and closing can be two very different things.
