DTN Early Word Opening Livestock 09/13 06:03
13 Sep 2016
DTN Early Word Opening Livestock 09/13 06:03 Cattle Paper Set to Open Moderately Higher Expect live and feeder futures to open Tuesday moderately higher, supported by another round of follow-through buying and short-covering. Lean hog contracts seem geared to begin with uneven price action tied to light bull spreading and profit-taking. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 10-30 HR Live Equiv $127.74 - .64* Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 86.29 - .64** * 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 market psychology is definitely on the mend thanks to the sustained bounce in live and feeder futures from the extreme lows of last week. Whether this positive swing in expectations will translate into better action in the cash market remains to be seen. Such a question is not likely to be seriously addressed Tuesday. We don't believe bids or asking prices will be well defined until sometime later this week. In the meantime, both sides will be cautiously watching the board, looking for reliable clues regarding price potential. Live and feeder contracts should open moderately higher, supported by spillover buying and further short-covering.