DTN Early Word Opening Livestock 07/22 06:05
Cattle Futures Should Open Mixed Prior to July 1 on Feed Report
The cattle complex is likely to open on a mixed basis thanks to a
combination of follow-through selling and pre-report short-covering. Lean hog
paper should also trade with uneven prices in the early going tied to spillover
selling and late-week profit-taking.
By John Harrington
DTN Livestock Analyst
Cattle: Steady/Weak with Wed Futures: Mixed Live Equiv $134.96 - .55*
Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 94.45 - .65**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle buyers and sellers should be looking for ways to generate a late
round of light to moderate trade volume. Hopefully the board will stabilize
enough to encourage both bids and asking prices. Our guess is that bids will
start out around $113 to $114 in the South and $181 to $182 in the North.
Preliminary asking prices may be around $115 to $117 in the South and $185 in
the North. The July 1 Cattle on Feed report will be released Friday afternoon
at 2:00 p.m. Average guesses anticipate the following: on feed, up 1% to 2%;
placed in June, up 7% to 8%; marketed in June, up 9% to10%. Live and feeder
futures should open on a mixed basis linked to residual selling on one hand and
pre-report short-covering on the other.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot