DTN Early Word Opening Livestock 11/02 06:01
2 Nov 2016
DTN Early Word Opening Livestock 11/02 06:01 Cattle Futures Set for Moderately Higher Opening at Midweek Live and feeder cattle futures should open moderately higher, supported by follow-through buying, improving technicals, and general cash optimism. On the other hand, look for lean hog issues to start out on a mixed basis thanks to residual selling on one hand and short-covering on the other. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $125.50 + .40* Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 79.46 + .43 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: A few preliminary bids may start to circulate in feedlot country Wednesday, but we don't expect to see the development of serious business interest until sometime Thursday or Friday. Country psychology continues to firm in terms of higher asking prices. Needless to say, higher futures and cutouts are stoking the fire in this regard. Our guess is that some showlists are now priced around $108 to $110 on a live basis. Live and feeder futures are likely to open moderately higher, supported by follow-through buying and positive technical considerations.