DTN Early Word Opening Livestock 02/03 06:04
3 Feb 2016
DTN Early Word Opening Livestock 02/03 06:04 Look for Strong Meat Futures on Opening The cattle complex seems staged to open moderately higher, boosted by spillover buying, higher cutouts and cash premiums. Lean hog contracts should also begin with a firm undertone thanks to short-covering and better wholesale product demand. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $149.36 + $1.24* Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 82.49 + $1.92** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: For the most part, feedlots will remain preoccupied with digging out from the storm to give cash cattle much thought. Our guess is that significant cash business will not develop until late this week. Some showlists in Texas have been priced around $140 to $142. Live and feeder futures seem geared to open moderately higher, supported by residual buying, appreciating carcass value, and recent feedlot business.