DTN Early Word Opening Livestock 08/16 05:54
16 Aug 2016
DTN Early Word Opening Livestock 08/16 05:54 Lean Hog Paper Staged to Open With Moderate Strength Expect lean futures to open higher, lifted by follow-through buying and early-week evidence of improving fundamentals. On the other hand, cattle contracts should begin with mixed price action thanks to follow-through selling and short-covering. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: Mixed Live Equiv $136.32 + .33* Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 81.96 +1.71** * 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 traders can set the cruise control on slow Tuesday (or just keep the car in neutral). Par for the early-week course, bids and asking prices will remain poorly defined. We assume that asking prices will start out around $120 to $122 in the South and $190 to $192 in the North. Live and feeder futures should open on a mixed basis linked to a combination of residual selling on one hand and short-covering on the other.