The cattle complex should open with mixed prices thanks to a combination of residual selling and pre cash short taking. Lean hog contracts are likely to open mixed as well, checked by follow-throug selling and midweek profit taking.
Cattle: Steady-$2 HR Futures: mixed Live Equiv: $142.66 + 072*
Hogs: Steady-$1 HR Futures: mixed Lean Equiv $ 72.97 + 0.21**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
The cash cattle market could start to take on greater potential this morning, at least in terms of more specific bids and asking prices. Asking prices are around $125 on a live basis and $196-198 dressed, barring the development of significant better basis opportunities, the development of trade volume may not surface until Thursday and Friday.
CME officials announced late Tuesday that 10 loads were retendered for delivered against April live cattle for $1, all at Dodge City. All 10 loads were demanded. Live and feeder futures should open on a mixed basis thanks to a combo of spillover selling and pre cash short covering.