DTN Early Word Opening Livestock 05/17 06:12
17 May 2016
DTN Early Word Opening Livestock 05/17 06:12 Meat Futures Staged for Another Firm Round Look for the cattle complex to open with a firm undertone, supported by follow-through buying and higher beef cutouts. Lean futures should also start out higher, lifted by short-covering and improving product demand. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $147.78 + 2.12* Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $ 88.62 + 1.13** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: The cattle stage is set for a typical do-nothing Tuesday. We don't expect to see much definition in terms of either bids or asking prices. Feedlot managers probably won't price cattle cheaper than $2 to $3 above last week. Yet such ideas may be hidden until Thursday or Friday. Live and feeder futures are likely to open moderately higher, supported by follow-through buying and further evidence of strengthening seasonal beef demand.