Live and feeder futures seem likely to open the week with mixed prices thanks to a combination of follow-through buyers and no better than steady feedlot sales on Friday. On the other hand, lean hog contracts should open moderately lower, pressured by bearish fundamentals.
Cattle: Steady Futures: mixed Live Equiv $131.03 – 0.12*
Hogs: $1-2 LR Futures: 50-100 LR Lean Equiv $ 87.40 – 0.87**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
You had to stay late, but light to moderate trade volume finally developed in feedlot country on Friday. Live sales were marked at $105 in the South and the North, generally steady with the previous week. When business is so delayed, it’s often tough to get an accurate handle on actual volume. We’ll post official Mandatory totals asap later this morning. But at this time we assume that feedlot managers were forced to carry-over a good number of unsold cattle.
For that reason, it seems likely that new showlists distributed this morning will be generally larger than last week. At any rate, not much will happen today beyond that distribution and the initial assessment of ready supplies. Live and feeder futures should open on a mixed basis thanks to residual buying on one hand and cash uncertainty on the other.