DTN Early Word Opening Livestock 11/28 06:08
Late-Week Cattle Paper Likely to be Supported by Light Short Covering
Look for live and feeder cattle futures to open moderately higher, supported
by short covering and recent cash premiums. The lean hog pit should start out
this morning with mixed prices in thin volume.
By John Harrington
Cattle: Steady w/Wednesday Futures: 10-30 HR Live Equiv $175.16 + 0.23*
Hogs: Steady Futures: mixed Lean Equiv $100.37 + 0.61**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Limited trade volume in cattle country right before the Thanksgiving break
suggest that some packers may still have some late week shopping to take care
of. On the other hand, it buyers chose to remain on holiday through the
weekend, we would have to assume that they will start out next week extremely
close to the knife. Asking prices on cattle still on showlists are around
$173-174 in the South and $270-plus in the North. Live and feeder futures seem
likely to open moderately higher, supported by pre-weekend short
covering/profit taking and the premium status of cash markets.
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