DTN Early Word Opening Livestock 05/24 06:39
Cattle Paper Set for Mixed Open as Traders Await Cash News
Live and feeder contracts are pegged to open mixed with the former likely
higher and the latter probably lower. Lean hog futures should also begin with
uneven price action in slow, pre-holiday volume.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$1 LR Futures: mixed Live Equiv $142.16 - .11 *
Hogs: Cash Steady Futures: mixed Lean Equiv $101.29 - .06 **
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Both cattle buyers and sellers will want to hit the long weekend as soon as
possible. Yet light to moderate business needs to be completed first. Several
packers remain short bought and all certainly enjoy excellent margins. On the
other hand, the board's big discount of fears the basis strength may soon be
fleeting are factor that could keep feedlot managers nervous. Look for opening
bids to start out around $124 live and $198-200 dressed, still below asking
prices of $126-plus in the South and $203-plus in the North. Cattle futures
should open on a mixed basis thanks to a combination of follow-through selling
and short covering.
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