DTN Early Word Opening Livestock 12/02 06:09
2 Dec 2015
DTN Early Word Opening Livestock 12/02 06:09 Meat Futures Set for Firm Midweek Opening Lean hog futures should open moderately higher, supported by follow-through buying and technical strength. The cattle complex is also likely to enjoy early strength thanks to the impressiveness of Tuesday's reversal. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: mixed Live Equiv $136.50 - $1.24* Hogs: Steady-$1 HR Futures: mixed Lean Equiv $ 73.01 - 0.89** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Asking prices and feedlot psychology have been on quite the roller coaster so far this week as widely swing cattle futures forced the basis to wane and wax and wane again. The board's sharp rally late Tuesday mean the basis at midweek looks extremely weak, a reality that should work to fortify higher asking prices (e.g., $132-plus in the South and $200-205 in the North. Packer inquiry could start to improve some at midweek but significant trade volume may be delayed until Thursday or Friday. Live and feeder futures should open moderately higher, supported by follow-through buying and beef demand optimism.