DTN Early Word Opening Livestock 11/03 06:03
3 Nov 2016
DTN Early Word Opening Livestock 11/03 06:03 Meat Futures Set to Open With Moderate Strength Look for hog futures to open moderately higher, boosted by follow-through buying and short-covering. The cattle complex is also expected to begin on a firm basis, supported by rising carcass value and cash optimism. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $126.37 + .87* Hogs: Steady-$1 LR Futures: 25-50 HR Lean Equiv $ 77.59 -1.87** * 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 buying inquiry should slowly start to improve Thursday as packers consider what it will take to source their next round of live inventory. Assuming that feedlot managers stick to higher asking prices (i.e., $108 to $109 in the South, $170 plus in the North), the development of significant trade volume could easily be delayed until sometime Friday. Live and feeder futures should open moderately higher, supported by pre-cash short-covering and light spec buying.