Look for live and feeder futures to open under pressure, checked by sharply lower feedlot sales and long liquidation. Hog paper should open mixed, higher front issues and lower back contracts.
Cattle: Steady w/Wed Futures: 100-200 LR Live Equiv $159.79 – 0.59*
Hogs: Steady-$1 HR Futures: mixed Lean Equiv $106.58 + $2.24**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Light to moderate trade volume surfaced in most cattle feeding areas on Wednesday as reluctant but nervous feedlot managers moved to accept yet another round of sharply lower bids. Most live sales were marked at $122-123, $8-9 lower. Again, it will be interesting to see official trade volume totals when Mandatory reports later this morning.
Since lower sales tend to get reported at a slower pace than higher one, we suspect midweek movement was larger than many assume. Our guess is that asking prices on the balance of show lists will start out this morning around $125 live and $198 plus in the North.
Live and feeder futures seem likely to open significantly lower, pressured by long liquidation and further signs of country panic.