DTN Early Word Opening Livestock 04/20 06:32
20 Apr 2016
DTN Early Word Opening Livestock 04/20 06:32 Cattle Complex Geared to Open Mixed The cattle complex is geared to open on a mixed basis thanks to a cautious combination of spillover selling and short-covering. Lean hog contracts should begin with a firm undertone, supported by follow-though buying and firming carcass value. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: Mixed Live Equiv $149.46 - 1.32* Hogs: Steady-$1 HR Futures: 10-30 HR Lean Equiv $ 85.82 + .79** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: If the cattle board can stabilize, we should start to see more preliminary cash bids at midweek. We expect cattle buyers to start out around $209 to $210 in the North and $130 in the South. Asking prices are likely to be posted in the neighborhood of $215 in the North and $134 in the South. Significant trade volume could easily be delayed until Thursday and Friday. Live and feeder futures should open on a mixed basis thanks to both residual selling and short-covering.