DTN Early Word Opening Livestock 06/09 06:02
9 Jun 2016
DTN Early Word Opening Livestock 06/09 06:02 Meat Futures Are Staged to Open With Solid Gains Look for the cattle complex to open at least moderately higher, supported by follow-through buying and the recent premium status of feedlot sales. Lean hog issues should also stay firm in the early rounds, boosted by bullish fundamentals and technical buying. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $146.83 + .19 * Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $ 94.05 +2.40 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Packer inquiry in cattle country should slowly begin to improve Thursday with initial bids around $125 in the South and $203 to $206 in the North. Yet given the bullish resolve of producers (i.e., recently intensified by surging live and feeder futures), buyers will probably have to find more powder in order to cover short-term slaughter needs. Determined asking prices around $130 to $132 in the South and $210 to $215 may mean that significant trade volume will not materialize until sometime Friday. Live and feeder futures seem ready to open moderately higher, supported by follow-through buying and cash premiums.