DTN Early Word Opening Livestock 01/19 06:06
Livestock Futures Seem Staged for Mixed Opening
The cattle complex is likely to open mixed as traders jockey ahead of last
week's cash developments. Lean hog issues should also begin with uneven price
action in slow volume.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$2 HR Futures: Mixed Live Equiv $139.06 + .60*
Hogs: Steady/Weak Futures: Mixed Lean Equiv $ 85.86 - .28**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
What a difference a week makes in terms of market timing. Last week's cash
business was essentially completed by Tuesday. This week we've reached Friday
with virtually nothing booked. Whatever explains the contrast, some action will
have to surface between now and sunset. Higher futures clearly anticipated that
packers will blink before feedlot managers. Look for opening bids around $118
in the South and $190 in the North. Asking prices should remain firm at $122 to
$123 in the South and $195 to $197 in the North. Live and feeder futures should
open mixed, tied to follow-through buying and profit-taking.
For more free DTN information sent right to your email each morning - click here
to sign up for DTN Snapshot.