DTN Early Word Opening Livestock 06/02 05:58
2 Jun 2016
DTN Early Word Opening Livestock 06/02 05:58 Look for Hog Contracts to Open With a Firm Undertone Hog futures are set to open higher, supported by follow-through buying and the appreciating pork carcass value. The cattle complex should be firm in the early going as traders position ahead of late-week cash. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 10-30 HR Live Equiv $145.94 + .22* Hogs: $1-2 HR Futures: 50-100 HR Lean Equiv $ 90.85 +1.27** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cattle buying interest should slowly start to take shape Thursday. Similarly, asking prices should become better defined (e.g., $130 in the South and $210 to $215 in the North). Positively, most packers seem both short-bought and well-margined. Yet don't be surprised if significant trade volume does not surface until sometime Friday. Live and feeder futures are likely to open modestly higher thanks to short-covering and positioning ahead of late-week cash.