DTN Early Word Opening Livestock 03/21 06:02
Livestock Paper Set for Mixed Opening at Midweek
Look for the cattle complex to open on a mixed basis thanks to
follow-through selling and midweek short-covering. Lean hog contracts should
also open with uneven price action tied with nearbys and is probably better
supported than deferreds.
By John Harrington
DTN Livestock Analyst
Cattle: Steady w/Tues Futures: Mixed Live Equiv $149.11 - .72*
Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 77.14 + .09**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Once again, cattle buyers have been successful in securing light-to-moderate
numbers early in the week, helped by another break in live and feeder futures.
Most live sales looked about $1 lower with dressed deals tagged close to $2
lower. While cash sales have done a decent job this month in stabilizing past
midweek, it will be interesting to see if feedlot managers can keep resisting
lower bids going forward (e.g., some Northern buyers had dropped bids to $202
late Tuesday). On the other hand, we know of several deals priced Tuesday at
$203 to $204 to be delivered in mid-April. Needless to say, it would help a
great deal if we could find a pulse at the CME. Asking prices are now around
$127 in the South and $205 in the North. Live and feeder futures should open on
a mixed basis thanks to a combination of residual selling and short-covering.
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