Expect cattle futures to open moderately higher Thursday, supported by follow-through buying and cash optimism. Lean hog contracts should also open generally higher thanks to short-covering and seasonal odds for improving fundamentals.
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv: $142.66 + .72*
Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv: $ 73.38 + .41**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
Cash cattle potential could take on greater definition Thursday, both in terms of more specific bids and asking prices. Opening live bids should be around $119 to $120 in the face of higher asking prices of $125 or better. Yet if the board stays firm, significant trade volume may not develop until sometime Friday.
No delivery intentions were announced against the April live contract on Wednesday. Live and feeder futures seem staged to open moderately higher, supported by follow-through buying and cash optimism.
