DTN Early Word Opening Livestock 08/03 06:09
Cattle Futures Primed for Early-Week Strength
Look for live and feeder cattle contracts to open this morning on a firm
basis thanks to greater packer spending on display late Friday. Lean hog are
likely to begin some higher, supported short covering and attractive processing
By John Harrington
Cattle: Steady to $2 HR Futures: 50-100 HR Live Equiv $157.97 - 0.03*
Hogs: Steady Futures: 10-30 HR Lean Equiv $ 92.51 + $1.29**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Activity in the fed cattle market should be typically slow as packers focus
on the assessment of new showlists. We expect ready numbers to be about steady
with last week, possibly some smaller given better trade volume on Friday.
Cattle buyers should once again find themselves quite short bought. Indeed, it
sounds like a good number of steers and heifers purchased on Friday have
already been scheduled to die. Early-month asking prices should be around $150
in the South and $238-240 in the North. Live and feeder futures seem set to
open solidly higher, supported by stronger cash sales and ideas that a reliable
seasonal bottom has been established.
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