DTN Early Word Opening Livestock 09/28 06:53
Futures Expected Lower Midweek
Late-day pressure Tuesday will carry into early Wednesday trade in the
cattle futures. The lack of support in the cattle market continued to erode any
support that had developed in hog markets.
By Rick Kment
Cattle: $2 to $4 LR Futures: Lower Live Equiv $127.96 + 0.42*
Hogs: Steady to $1 LR Futures: Mixed Lean Equiv $ 82.73 - 1.04**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Aggressive pressure across cattle futures Tuesday created panic selling in
some areas of the North where light trade took place in Nebraska at $163 per
cwt, which is $4 lower than last week's average. Packers remain short bought,
but the bearish tone in the market may continue to pressure the market and
create a bearish tone in the complex. Futures are expected to open defensively
once again with Tuesday's limit losses giving way to expanded trading limits in
both live cattle and feeder cattle markets. This could create a wide trading
range through the Wednesday session and given the lack of direction in the
market, it is anyone's guess as how it will play out.
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