DTN Early Word Opening Livestock 07/02 06:07
The Cattle Complex Seems Geared for Moderate Opening Strength
Live and feeder cattle futures should open moderately higher, supported by
follow-through buying and stronger cash sales. Lean hog contracts are likely to
begin with mixed price action tied to residual buying on one hand and profit
taking on the other.
By John Harrington
Cattle: Steady/fr w/Wed Futures: 10-30 HR Live Equiv $170.48 - 0.16*
Hogs: Steady-$1 LR Futures: mixed Lean Equiv $ 86.46 + 0.03**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Somewhat surprising, cattle buyers didn't wait until the last minute to
cover slaughter needs. Most pulled out wallets yesterday and purchased fairly
significant numbers. Most of the live biz in the South was marked at $150, $2
higher than last week. Most dressed deals in the North were tagged $240, $2-3
higher. We suspected that most trading is done for the week. Unsold steers and
heifers remaining on show lists are probably prices around $152 in the South
and $245 in the North. Live and feeder futures are set to open moderately
higher thanks to spillover buying and surprising cash strength.
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