Following a wild week of price shifts and directional changes in livestock futures, trade is expected to slow slightly Friday morning. This could mean mixed market activity in most contracts at opening bell.
Cattle: Steady to $1 Higher Futures: Higher Live Equiv: Unavailable*
Hogs: Mixed Futures: Mixed Lean Equiv: Unavailable**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle activity in the South remains at a standstill going into the Friday session with at least light trade expected before the end of the week. Limited trade in the North was all over the place and inconsistent with prices at $180 to $185 dressed basis. This ranged from steady to $5 per cwt higher. There was not enough active trade in these areas to determine a more accurate market trend, which is likely to spark some additional interest Friday.
Packer activity is likely to improve in both areas through the morning with traders looking for additional market firmness through the cash complex. Feeders continue to hold onto firm asking prices, with the possibility of late afternoon trade in several areas Friday. Futures trade is expected firm Friday following moderate underlying support developing in live cattle and feeder cattle Thursday.
Trade volume is likely to slow through the end of the week, although the underlying firm market tone is expected to be carried into the weekend. The ability to hold prices at current trading ranges through the end of the week in both live cattle and feeder cattle trade is likely to spark underlying commercial buying early next week.