DTN Early Word Opening Livestock 08/29 06:07
Cattle Pits to Open with Mixed Prices
Look for live and feeder cattle contracts to begin with mixed prices as
traders cautiously position before the surfacing of late week cash business.
Lean hog futures should open moderately higher, supported in part by ideas that
the cash market is likely to firm after Labor Day.
By John Harrington
Cattle: Steady-$2 HR Futures: mixed Live Equiv $169.21 - 0.78*
Hogs: $1-2 LR Futures: 25-50 HR Lean Equiv $109.24 + 0.44**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Packers and feedlot managers can forget about those early tee times. Golfing
and other fun in the late summer sun will have to wait until traders do the
hard work of cash negotiations sometime between now and early afternoon.
Opening bids should start out around $150-151 in the South and $240-243 in the
North. Pre Labor Day asking prices should remain firm at $155 plus in the South
and $245 plus in the North. Live and feeder futures should open on a mixed
basis with traders cautiously monitoring cash prospects, perhaps ready to jump
in the opposite direction of the first blink.
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