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DTN Early Word Opening Livestock       09/01 05:52
   Hog Paper to Open Moderately Higher Thanks to Follow-Through Buying

   Lean contracts should open moderately higher, supported by follow-through
buying and stronger carcass value. On the other hand, live and feeder cattle
issues are likely to trade on a mixed basis in the early going tied to residual
selling as well as short covering.

By John Harrington
DTN Analyst

Cattle:  Steady to $2 HR   Futures: mixed     Live Equiv $162.54 - .42 *
Hogs:    Steady to $1 LR   Futures: 10-30 HR  Lean Equiv $ 90.66 + $1.31
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue


   Chance are cattle traders are in for a typically quiet Tuesday with bids and
asking prices poor defined. Have said that, several packers appear to be quite
short bought (e.g., a few bids of $146 were already evident in parts of Kansas
on Monday). Furthermore, we assume that both buyers and sellers want to wrap up
chores ASAP this week in order to maximize the long holiday weekend ahead.
Preliminary asking prices should be around $150 in the South and $232-plus in
the North. Live and feeder futures should open on a mixed basis with a combo of
spillover selling and short covering.
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