Limited volume is expected during initial trade with a combination of follow-through buyer support and position taking following early-week gains.
Cattle: Steady Futures: Mixed Live Equiv: $137.29 -0.01*
Hogs: $1 Higher Futures: Mixed Lean Equiv: $ 85.46 +2.08**
* 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 through most of the day as asking prices and bids are still unavailable, and it may stay that way until either late Tuesday or sometime Wednesday. Light-to-moderate cash cattle trade could develop in the South by Wednesday.
Given the early-week firmness in futures trade and expected follow-through demand support, feeders are unlikely to give in to steady-to-lower bids early in the week. This could create a standoff over the next few days with a wide gap between asking prices and bids likely the next few days. Futures trade is expected to be mixed, but the firm tone early in the week could continue.
Traders continue to assess short-term resistance levels in live cattle and feeder cattle trade. If contracts can break through last week’s highs, the potential for increased underlying buying will significantly increase.