DTN Early Word Opening Livestock 04/27 06:00
Look for Cattle Paper to Open With Bullish Momentum
Live and feeder futures should open solidly higher, supported by
follow-through buying, technical encouragement, and cash optimism. Lean hog
contracts are likely to begin moderately lower, checked by residual selling and
uncertain product demand.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $146.66 + .13 *
Hogs: Steady-$1 HR Futures: 25-50 LR Lean Equiv $ 78.82 - .35**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle buying interest should continue to improve Thursday. Opening cash
bids should be around $128 to $130 on the South and $212 to $213 in the North.
Yet as bullish-minded feedlot managers dig in with asking prices around $134 to
$135 in the South and $215 to $218 in the North, significant trade volume could
be delayed until Friday. Expect live and feeder futures to open on a firm
basis, boosted further by spillover buying, technically-promising charts and
ideas of further cash progress.
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