DTN Early Word Opening Livestock 10/26 06:03
26 Oct 2016
DTN Early Word Opening Livestock 10/26 06:03 Hog Paper Stacked to Open Moderately Higher Look for lean hog futures to open moderately higher, supported by short-covering and bull spreading. The cattle complex should also begin on a firm basis with the help of improving carcass value and ideas of further cash market strength. By John Harrington DTN Livestock Analyst Cattle: $1-3 HR Futures: 10-30 HR Live Equiv $123.42 +1.16* Hogs: Steady Futures: 25-50 HR Lean Equiv $ 78.47 + .50** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: While a few preliminary bids could surface at midweek, we don't expect to see meaningful trade volume develop before Thursday and Friday. As long as the board and cutouts avoid significant reversals, feedlot managers are likely to stick with significantly higher asking prices (e.g., $105 plus basis Kansas and Texas). Live and feeder futures seem staged to open moderately higher, boosted by both short-covering and new spec buying (open interest does seem to be growing).