DTN Early Word Opening Livestock 01/17 06:02
Livestock Futures Likely to Open Moderately Higher
Look for the cattle complex to open higher Tuesday, supported by
follow-through buying and further gains in the cash market late last week. Lean
hog futures should also begin with a firm undertone, sparked by positive
fundamentals and wintry weather.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $131.13 + .64*
Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $ 85.80 +1.15**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Activity in feedlot country Tuesday will no doubt be limited to the
distribution of new showlists. The midmonth offering could be about steady.
While last week's limited movement may have caused some ready steers and
heifers to be carried over, it's also possible that harsh winter weather is
working to strip the finish from the country's front-end supply. Although
asking prices will probably be poorly defined Tuesday, our guess is that
bullish feedlots will start out thinking around $122 plus in the South and $195
plus in the North. Look for live and feeder futures to open moderately higher
thanks to follow-through buying and ongoing evidence of cash strength.
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