Traders are expected to quickly step back into the futures complex following the lackluster trade late last week and long holiday weekend. Early price shifts are expected to be mixed to mostly higher as traders look for additional information concerning product clearance over the past weekend.
Cattle: Steady Futures: Steady to $1 Higher Live Equiv: $147.11 -0.58*
Hogs: Steady to Firm Futures: Mixed Lean Equiv: $ 80.79 +1.49**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Traders are returning from the long holiday weekend with a sense that the focus through the upcoming days and weeks will be placed on summer demand and post-holiday activities. Traders will closely monitor overall movement in the market as they try to quickly assess overall beef product demand over the last weekend. This may help to give a clear indication as to what can be expected between now and the Fourth of July holiday.
Warmer temperatures in many areas are likely to help spark additional consumer demand. Early cash market activity is expected to remain sluggish following the lackluster market movement last week. But this could set the tone for an end-of-the-week showdown. But for the most part, inventory-taking and showlist distribution is the main focus Tuesday.
Futures trade is expected steady to firm following the late week rally Friday following the Cattle on Feed report, which posted overall placements at 92% of year-ago levels.