Cattle markets continue to search for longer-term market direction following early week support. Limited activity Monday is likely to keep prices mixed in a narrow-to-moderate range through most of the morning.
Cattle: Steady Futures: Mixed Live Equiv: $138.15 -0.81*
Hogs: Higher Futures: Mixed Lean Equiv: $ 74.51 -0.44**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
The focus on feedlot managers pushing for higher cash cattle prices following futures market support and a break higher in prices last week is evident with increased asking prices. But as of yet, bids have yet to be developed, which may limit optimism through the midweek session.
A few token bids may be seen Wednesday, although at this point, it is unlikely that active cash market movement will develop until later in the week given the sideways moves expected in futures trade and limited support in beef values.
Futures trade is likely to be mixed with limited direction developing. The inability to sustain early week support could lead to a moderate price shift lower through the end of the week as traders adjust to the current trading range with limited additional market news or direction expected through the week.