The cattle complex seem set to open some higher this morning, supported by short covering and the tall premium of recent feedlot sales. On the other hand, lean hog issues are likely to begin with mixed prices thanks to a combinations of follow-through selling and early week profit taking.
Cattle: Steady to $2 HR Futures: 25-50 HR Live $142.00 – 0.02*
Hogs: Steady Futures: mixed Lean Equiv ___FCKpd___0nbsp; 86.02 + 0.47**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Activity in cattle country will be typically limited to the distribution of new showlists. The early month offering is expected to be about steady with last week. Feedlot managers may not be in a hurry to price ready cattle, at least momentarily pausing to check out the strength out carcass value and the ability of spot April live to shake some of its deep discount.
Our guess is that producers will eventually show asking prices of around $128 in the South and $202-204 in the North. Live and feeder futures are expected to open moderately higher, supported by cash premiums and recognition of oversold charts.