DTN Early Word Opening Livestock 07/24 06:16
Meat Futures to Open in Opposite Price Directions
Look for the cattle complex to open significantly higher, supported by
follow-through buying and ideas of another round of impressive feedlot
strength. Conversely, lean hog futures should open substantially lower,
pressured by residual selling and struggling fundamentals.
By John Harrington
Cattle: Cash $2-$4 HR Futures 50-150 HR Live Equiv $174.06 + .79*
Hogs: Cash Steady-$1 LR Futures 100-150 LR Lean Equiv $141.37 -
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Based on the sizzling sample of cash cattle sales seen here and there on
Wednesday (e.g., $255 basis Nebraska; $160 basis Iowa), we assume significant
trade volume will eventually develop at sharply higher prices sometime Thursday
and/or Friday. Just when you think this summer's bullish curiosity is about to
run out of gas, a new wave of unexpected potential swells in the near horizon.
Asking prices are around $160-plus in the South and $255-plus in the North.
Live and feeder futures are set to open significantly higher with the former
probably gapping to new historical highs the moment pit trading begins.
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