DTN Early Word Opening Livestock 12/22 06:09
22 Dec 2016
DTN Early Word Opening Livestock 12/22 06:09 Cattle Paper Ready to Open Moderately Higher Live and feeder futures should open moderately higher, supported by follow-through buying and cash optimism. Lean hog contracts are also likely to begin with a firm undertone thanks to appreciating carcass value and technical buying. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $133.14 + .44 * Hogs: Steady Futures: 25-50 HR Lean Equiv $ 85.42 + 1.24 ** * 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 interest is expected to heat up Thursday as traders attempt to put cash business to bed before adjourning for pre-Christmas activity. Perhaps compromise between buyers and sellers will not be reached until sometime Friday, but our guess is that players will try hard to complete procurement chores sooner rather than later. Look for opening bids around $110 in the South and $174 to $175 in the North. Asking prices will be eagerly restated at $115 plus in the South and $178 to $180 in the North. Live and feeder should open moderately higher, supported by residual buying interest, cash optimum and technical bullishness.