DTN Early Word Opening Livestock 10/19 06:09
19 Oct 2015
DTN Early Word Opening Livestock 10/19 06:09 Cattle Futures Geared to Gap Sharply Higher Live and feeder futures should open significantly higher, jolted by surging feedlot sales on Friday and technical buying. Lean contracts are likely to trade with moderate strength in the opening rounds, supported by spillover cattle buying and firming carcass value. By John Harrington DTN Livestock Analyst Cattle: Higher Futures: 100-200 HR Live Equiv $143.35 + 0.11* Hogs: Steady to $1 LR Futures: 25-50 HR Lean Equiv $ 93.72 + $1.58** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Price swings in the last half of 2015 continue to set cattle market history. After breaking more than $33 from mid-August through October, the fed market has rallied close to $20 over the last two weeks. We assume that this remarkable comeback will be extended somewhat today. The size of the next step forward may depend upon the ability of packers to sell beef higher. Early asking prices may be around $145-plus on a live basis. CME officials announced no new delivery intentions on Friday. One load was retendered at $1. Live and feeder futures are set to gap sharply higher based on what seems to be surging cash potential.