DTN Early Word Opening Livestock 08/27 06:03
Hog Paper to Recover Further at Midweek
Lean hog futures are staged to open solidly higher this morning, supported
by spillover buying and ideas of stabilizing late summer fundamentals. The
cattle complex should begin on a mixed basis as traders cautiously position
ahead of cash news.
By John Harrington
Cattle: Steady Futures: mixed Live Equiv $170.61 - 0.64*
Hogs: Steady-$1 LR Futures: 50-100 HR Lean Equiv $111.78 + 0.48**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Packer inquiry in cattle country should start to slowly improve this
morning, probably with starter bids around $150 in the South and $238-240 in
the North. Assuming that feedlot mangers restate asking prices around $155 in
the South and $245-plus in the North. If both sides dig in their heels,
significant business will probably be delayed until Thursday. Live and feeder
contracts should open on a mixed basis thanks to a combination of
follow-through buying and midweek profit taking.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.