DTN Early Word Opening Livestock 11/27 06:11
Cattle Contracts Staged for Firm Opening
Look for live and feeder futures to open moderately higher, supported by
follow-through buying and the late-week needs of short-bought packers. On the
other hand, lean hog contracts seems likely to open mixed thanks to residual
buying on one hand and profit taking on the other.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$2 HR Futures: 10-30 HR Live Equiv $136.87 + 0.54*
Hogs: Steady Futures: mixed Lean Equiv $ 76.21 - $1.90**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Given the general lack of trade volume generated in feedlot country Monday
through Wednesday, we assume that cattle buyers interrupt the long holiday
weekend today in order complete minimal procurement chores. Asking prices
should be restated around $131-plus in the South and $200-plus in the North.
Both sides should want to complete business as soon as possible. The board is
scheduled to settle an hour earlier than normal due to the holiday. Cattle
futures should open moderately higher, supported by follow-through buying and
optimistic cash expectations.
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