DTN Early Word Opening Livestock 03/27 06:09

DTN Early Word Opening Livestock 03/27 06:09 Meat Futures Staged For Long Liquidation Tied to Lifting of Brazilian Bans The cattle complex should open significantly lower with early selling linked to China's decision to lifts its general ban on Brazilian meat. Lean hog issues are also likely to begin on the defensive thanks to follow-through selling and long liquidation. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 100-200 LR Live Equiv $150.06 - .30* Hogs: Steady-$1 LR Futures: 50-100 LR Lean Equiv $ 83.86 + .96** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: In shocking reversals of trade policy, China and several other major meat importers suddenly announced on Saturday the lifting of bans on Brazilian meat. Just early last week, as many as 20 countries moved to ban Brazilian meat after police reported cases of inspection bribery and possible meat contamination. This story seemed to spark considerable CME buying interest in cattle futures, tied to ideas that a major disruption in the global meat trade was afoot. With China's renewed acceptance of Brazilian product, such a theoretical disruption would seem to be in doubt.