DTN Early Word Opening Livestock 05/06 05:59
6 May 2016
DTN Early Word Opening Livestock 05/06 05:59 Cattle Futures Staged for Higher Opening Live and feeder contracts are geared to open moderately higher, supported by follow-through buying, technical strength, and ideas of cash stability. Lean hog issues should also open on a firm basis thanks to late-week short-covering and steadily improving fundamentals. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 25-50 HR Live Equiv $137.69 - .14* Hogs: Steady-$1 HR Futures: 10-30 HR Lean Equiv $ 88.12 + .66** * 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 cattle buying energy may take some time to focus Friday, we should see moderate trade volume in most feeding areas by the end of the day. Packers are both well-margined and relatively short bought, two factors that could generate near steady country sales when everything is said and done. Asking prices are around $126 to $127 in the South and $196 to $198 in the North. Live and feed futures are expected to open moderately higher, boosted by spillover buying and technical strength.