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DTN Early Word Opening Livestock       05/03 06:10
   Hog Paper Likely to Open Moderately Higher

   Lean hog futures should open moderately higher, supported by follow-through
buying and steadily appreciating carcass value. The cattle complex also seems
ready to open on a firm basis thanks to residual buying and recent feedlot

By John Harrington
DTN Livestock Analyst

Cattle: Steady-$2 LR   Futures: 10-30 HR   Live Equiv $140.87 -$1.19 *
Hogs:   Steady-$1 HR   Futures: 10-30 HR   Lean Equiv $ 88.73 +$1.19 **

* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue


   Nearly all cattle market watchers and participants are prepared for a
typically slow Tuesday. Neither bids nor asking prices are likely to be well
designed. Our guess is that asking prices will start out around $126 to $128 in
the South and $200 plus in the North. The great discount of spot June makes it
tough (both in terms of basis strength and general psychology) for feedlot
managers to dig in their heels with higher asking prices. Significant trade
volume could easily be delayed until Thursday or Friday. Look for live and
feeder futures to open moderately higher with the help of spillover
short-covering and the premium nature of recent feedlot sales.
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