Live and feeder contracts should open moderately lower, checked by follow-through selling and prospects of cash discounts. Hog futures may also resume trade Friday on the defensive tied to bearish fundamentals.
Cattle: Steady-$2 HR Futures: 50-100 LR Live Equiv $129.88 – .26*
Hogs: $1-2 LR Futures: 50-100 LR Lean Equiv $ 84.48 -1.10**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle buyers and sellers will soon have to put-up-or-shut-up. Look for at least light to moderate trade volume to finally develop sometime between late morning and mid-afternoon. Asking prices should be restated around $108 in the South and $170 plus in the North. Live and feeder futures are likely to open moderately lower, pressured by residual selling and pre-cash long liquidation.