Lean hog contracts should open significantly lower with deferreds losing more ground to spot July and August. The cattle complex seems set to begin lower as well thanks to long liquidation and beef demand concerns.
Cattle: Steady/Weak w/Wed Futures: 50-100 LR Live Equiv: $140.65 – .94*
Hogs: Steady Futures: 50-200 LR Lean Equiv: $ 92.91 – .07**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
The late-week feedlot trade should be quite slow with business probably limited to scattered sales of steers and heifers at price levels essentially established at midweek (i.e., $106 live; $169 to $170 dressed). Live and feeder futures should open moderately lower, pressured by struggling carcass value and a lack of follow-through buying interest. Spot June live is scheduled to expire at high noon.
