DTN Early Word Opening Livestock 07/06 05:56
6 Jul 2016
DTN Early Word Opening Livestock 07/06 05:56 Cattle Paper to Open With Moderate Strength Look for the cattle complex to open moderately higher, boosted by spillover buying interest and large cash premiums. Lean hog futures are likely to open on a mixed basis tied to light bear spreading and profit-taking. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $139.30 + .26* Hogs: Steady Futures: Mixed Lean Equiv $ 94.75 + .05** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: We will be surprised if the cash cattle trade takes on much definition Wednesday. A few preliminary bids could surface here and there, but significant business will most likely be delayed until Thursday or Friday. Some ready cattle could be priced around $125 in the South and $200 to $202 plus in the North. Live and feeder futures should open moderately higher, supported by spillover buying from Tuesday's reversal and the tall premium status of recent feedlot sales.