DTN Early Word Opening Livestock 01/29 06:06
Meat Futures Set to Open with Mixed Prices
The cattle complex should open on a mixed basis thanks to a combination of
residual buying interest and further long liquidation. Lean hog contracts are
also likely to trade unevenly in the opening rounds tied to a combination of
follow-though buying and profit taking.
By John Harrington
Cattle: Steady to $2 LR Futures: mixed Live Equiv $169.27 - 0.11*
Hogs: Steady to $1 LR Futures: mixed Lean Equiv $ 85.92 - $1.28**
* 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 start to improve this morning as short bought
packers get serious about covering slaughter needs. Opening bids will probably
begin around $249-250 in the North and $154-155 in the South. Some asking
prices are around $260 plus in the North and $162 plus in the South. If feedlot
managers dig in, significant trade volume could be delayed until Friday. Live
and feeder futures seem set to open on a mixed basis thanks to spillover buying
on one hand and long liquidation on the other.
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