DTN Early Word Opening Livestock 06/24 06:22
Meat Futures to Open Lower, Pressured in Part By Brexit Vote
Livestock futures could open moderately lower, pressured in part by the U.K.
vote to leave the EU and the resulting strength in the U.S. dollar. Yet
contracts could quickly turn mixed as traders position ahead of Friday's long
menu of reports.
By John Harrington
DTN Livestock Analyst
Cattle: Stdy-$2 HR w/Wed Futures: 50-100 LR Live Equiv $143.00 - .57*
Hogs: Steady Futures: 50-100 LR Lean Equiv $ 94.34 - .36**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Given relatively small week-to-date trade volume totals, light to moderate
trade volume could still surface in parts of feedlot country sometime between
late morning and early afternoon. Look for cattle buyers to start out with bids
around $116 in the South and $189 to $190 in the North. Steers and heifers
remaining on showlists are priced around $118 plus in the South and $192 plus
in the North. The cattle complex at the CME seems likely to open moderately
lower, checked by long liquidation prior to the June 1 Cattle on Feed report to
be released Friday afternoon at 2:00 p.m. (CDT). The board could also be
pressured by the U.K.'s apparent decision to leave the EU, causing the pounds
to plummet and the dollar to surge (the latter being negative for the prospects
of U.S. meat exports). As far as the Cattle on Feed report is concerned,
average guesses expected on feed to be up 2%, placed up 10%, and marketed up 5%.
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