Live and feeder contracts should open at least moderately higher, supported by residual buying and some firmness in packer bids late Friday. Lean hogs issues are set to open on a mixed basis with deferreds losing more ground to nearbys.
Cattle: Steady-$2 LR Futures: 50-100 HR Live Equiv: $139.64 -1.01*
Hogs: Steady-$1 LR Futures: Mixed Lean Equiv: $ 92.73 – .18**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Look for a typically quiet Monday with cattle buyers limiting efforts to the collection of new showlists. We expect the early-month offering be about steady with last week. Significant trade volume is not likely to develop until after the July Fourth break. Live and feeder futures are set to open moderately higher, supported by follow-through buying and live sales as high as $108 on Friday.