DTN Early Word Opening Livestock 10/25 06:07
25 Oct 2016
DTN Early Word Opening Livestock 10/25 06:07 Meat Futures Set for Solid Gains in Opening Rounds Live and feeder futures should open higher Tuesday, supported by spillover buying and greater cash optimism. Lean hog issues should also open with a firm undertone, boosted by short-covering and bull-spreading interest. By John Harrington DTN Livestock Analyst Cattle: $1-3 HR Futures: 50-100 HR Live Equiv $122.26 + .58* Hogs: Steady Futures: 50-100 HR Lean Equiv $ 77.97 + .89** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Given such an exciting bullish blast on the board to start the week, feedlot managers will be in no hurry to price showlists Tuesday. We have heard that some Southern cattle have been priced around $105. Nevertheless, it's a good bet that both buyers and sellers will take a wait-and-see attitude. If the board continues to nurse a firm undertone, significant cash activity will probably be delayed until Thursday or Friday. Live and feeder futures seem likely to open significantly higher, powered by follow-through buying and improvement fundamentals.