DTN Early Word Opening Livestock 12/12 06:20
Cattle Complex Seems Geared to Open with Uneven Prices
Look for the cattle pits to begin with mixed trading as bulls and bears
position ahead of feedlot sales. Lean hog futures should open moderately higher
thanks to short covering and signs of greater cash stability.
By John Harrington
DTN Livestock Analyst
Cattle: Steady Futures: mixed Live Equiv $138.69 - 0.07*
Hogs: Steady-0.50 HR Futures: 10-30 HR Lean Equiv $ 98.36 - $1.25**
* 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 at least be a little more evident this morning
with possibly a few more preliminary bids tossed out over the feeding area.
Initial bids should be around $129-130 in the South and $206-207 in the North.
Such efforts won't make friends anytime soon given firm asking prices of $134
in the South and $210-212 in the North. Yet it's possible that selling interest
could suddenly surface if risk managers perceive attractive basis
opportunities. Otherwise, we think the development of significant trade volume
could easily be delayed until sometime Friday. Live and feeder futures seem
staged to open on a mixed basis as traders carefully position ahead of late
week cash development.
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