DTN Early Word Opening Livestock 01/20 05:56
20 Jan 2016
DTN Early Word Opening Livestock 01/20 05:56 Meat Futures Set to Open Moderately Higher The cattle complex seems likely to open moderately higher Wednesday, supported by follow-through buying and the premium status of recent feedlot sales. Lean hog contracts should also enjoy a firm undertone in the early going thanks to signs of impressive cash strength and bull spreading interest. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 25-50 HR Live Equiv $153.68 - $1.09* Hogs: $1-2 HR Futures: 25-50 HR Lean Equiv $ 77.50 - $ .07** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: While a few preliminary bids could be floated in cattle country Wednesday morning, our guess is that cash noise will remain limited for another day or so. Country traders are no doubt cautious about current basis levels, split over whether they will stay historically strong or inevitably weaken. Both buyers and sellers will be carefully monitoring the performance of futures in this regard. Outside markets remain a wildcard, potentially acting up again to cloud the more fundamental value of cattle and beef. Live and feeder futures seem set to open moderately higher, boosted by follow-through buying and the cash feedlot premiums seen last Thursday.