DTN Early Word Opening Livestock 06/30 06:00
30 Jun 2016
DTN Early Word Opening Livestock 06/30 06:00 Cattle Futures Staged for Firm Opening Based on Follow-Through Buying Live and feeder cattle contracts should open moderately higher, supported by residual buying interest and cash optimism. On the other hand, lean hog futures are geared to open lower, checked by spillover selling and defensive pork carcass value. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $139.62 + .01* Hogs: Steady-$1 LR Futures: 25-50 LR Lean Equiv $ 94.16 - 2.17** * 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 buyers could start to float a few preliminary bids Thursday morning, say around $113 to $115 in the South and $184 to $185 in the North. Yet asking prices should remain quite firm thanks to recovering futures (i.e., $120 plus in the South and $190 to $192 in the North). In all likelihood, the wide spread between bids and asking prices will not significantly narrow until sometime Friday. Live and feeder futures are set to open moderately higher, supported by follow-through selling and ideas of stronger feedlot sales sometime before the market breaks for the Fourth of July holiday.