DTN Early Word Opening Livestock 10/11 06:00
11 Oct 2016
DTN Early Word Opening Livestock 10/11 06:00 Beef Futures Staged to Open With Further Selling Interest Live and feeder cattle futures should open moderately lower, pressured by follow-through selling and lackluster fundamentals. On the other hand, lean hog issues seem ready to begin with mixed price action thanks to bear spreading and profit-taking. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 25-50 LR Live Equiv $125.20 + .44* Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 78.15 - .33** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: If the cattle board can manage to stabilize Tuesday, the cash trade should be typically slow with both bids and asking prices remaining poorly defined. On the other hand, another large wave of selling could trigger early-week selling interest if it suddenly makes sense for producers to take advantage of firm basis opportunities. Spot October live probably needs to quickly pop back over 100 in order to stem the possible development of country panic. Live and feeder futures should open moderately lower, pressured by residual selling and technically defensive charts.