DTN Early Word Opening Livestock 11/21 06:02
Meat Futures Seem Staged to Open with Mixed Prices
Look for cattle futures to open moderately lower, checked by follow-through
selling and technical defensiveness. Lean hog contracts should open on a firm
basis thanks to residual buying interest and firming carcass value.
By John Harrington
DTN Livestock Analyst
Cattle: Steady to $2 LR Futures: 25-50 LR Live Equiv $135.72 - 0.35*
Hogs: Steady to $1 LR Futures: 50-100 HR Lean Equiv $ 87.49 + $1.31**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle buyers could slowly start to surface this morning, earlier than
normal thanks to the need to wrap-up procurement chores before breaking for
turkey on Thursday. Expect live bids to start out around $117-118, probably
$3-4 below asking prices. Yet both these starting points may depend upon the
board's ability to stabilize. Our guess is that significant trade volume will
probably be delayed until sometime Wednesday. Live and feeder futures should
open moderately lower, pressured by spillover selling and cash uncertainty.
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