DTN Early Word Opening Livestock 03/23 06:03
Look For Follow-Through Buying to Sponsor Higher Cattle Futures Opening
Live and feeder contracts should open solidly higher, supported by technical
buying and firm cash expectations. Conversely, lean hog issues are likely to
begin with moderate price pressure.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $150.60 - .58*
Hogs: Steady Futures: 25-50 LR Lean Equiv $ 84.45 -1.92**
* 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 is expected to accelerated sometime Thursday and/or
Friday. After Wednesday's successful internet auction, asking prices seem to be
on the rise. Specifically, the FCE sold 2,195 steer and heifers at a weighted
average price $133.35, up $4.96 from last week's weighted average of $128.39.
Such inspiration is currently encouraging asking prices around $132 plus in the
South and $217 plus in the North. Live and feeder are staged to extend
Wednesday's rally, fueled by technical bullishness and potential cash strength.
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