DTN Early Word Opening Livestock 04/24 05:52
Late-Week Meat Futures Should Open on Firm Basis
Expect the cattle complex to open moderately higher, supported by spillover
buying and jockeying before late week cash and the monthly on feed report. Lean
hog contracts are also likely to start out in the black thanks to
follow-through bullishness and ideas of seasonally improving fundamentals.
By John Harrington
Cattle: Steady/firm w/Wed Futures: 25-50 HR Live $175.33 + 0.34*
Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 74.56 + $2.19
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Trade volume total generated at midweek don't seem big enough to cover short
term slaughter needs. Accordingly, we think another round of light to moderate
biz should develop sometime today, possibly not until the release of the April
1 on feed report scheduled for release at 2:00 p.m. CDT. Asking prices on the
balance of show lists are around $160 in the South and $256-258 in the North.
Trade guesses predict March placement to be 4-5% lower, March marketing to be
3-4% lower, and total on feed to be off 1%. Live and feeder futures are set to
open moderately higher, supported by residual buying interest and cash
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