DTN Early Word Opening Livestock 10/08 06:16
Cattle Futures Staged for Firm Opening
Live and feeder contracts seem likely to open moderately higher, supported
by spillover buying and further short-covering. Look for hog futures to begin
on a mixed basis tied to a combination of short-covering and profit-taking.
By John Harrington
DTN Livestock Analyst
Cattle: Steady to $2 LR Futures: 10-30 HR Live Equiv $138.21 - 0.60*
Hogs: Steady Futures: mixed Lean Equiv $ 91.31 -
* 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 begin to improve in the morning, though
significant trade volume could easily be delayed until Friday. Asking prices
have obviously been rising along with the recovering board. Some asking prices
are around $128 to $129 on a live basis. CME officials announced 35 deliveries
on Wednesday (7 new, all steers, 3 at Columbus, 4 at Syracuse; 13 retendered at
$1, all steers at Dodge City; 15 retendered at Worthing, 4 heifers, 11 steers).
Cattle futures should open moderately higher thanks to follow-through buying
and further short-covering.
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