DTN Early Word Opening Livestock 10/02 06:09
Feeder Contracts to Surge Further on Opening
Look for the cattle complex to open with substantial gains thanks to
follow-through buying and technical bullishness. Feeder contracts are likely to
race ahead of their live counterparts.
By John Harrington
DTN Livestock Analyst
Cattle: Cash $1-$3 HR Futures 50-200 HR Live Equiv $163.70 + .20*
Hogs: Cash Steady-$1 LR Futures Mixed Lean Equiv $130.00 - .18**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
We're still waiting to see the first cattle bids of the week. Maybe packers
will throw out a few preliminary ideas this morning. You can bet that bullish
feedlot managers, inspired by recent board action, will not be shy about
aggressively pricing showlists on a higher basis. Our guess is that asking
prices will be floated around $165 in the South and $255 to $260 in the North.
Although packers are believed to be short bought, significant trade volume may
not surface until sometime Friday. Cattle futures seem set to open
significantly higher, especially in the feeder pit.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot