Monday morning trade is expected to be mixed as traders return to the complex following the sluggish holiday late last week. The limited volume Friday allowed for wide market swings, creating potential adjustments Monday.
Cattle: Steady Futures: Mixed Live Equiv: $139.85 -0.74*
Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv: $ 77.99 +1.56**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle interest is expected to remain sluggish Monday morning following light-to-moderate trade last week that developed before the holiday break on Wednesday. Showlist distribution and inventory-taking is expected to be the main order of business Monday, with bids and asking prices likely to be unavailable until Tuesday or later.
Futures trade is expected to be mixed in limited early trade with a combination of follow-through buying and position-taking expected in the first couple hours of trade. The sluggish activity late last week sparked widespread gains in live cattle and feeder cattle trade, but the increased volatility surrounding potential moves in grain prices and limited support in beef values during early July is likely to limit upside market shifts the next couple of weeks.