DTN Early Word Opening Livestock 04/16 06:22
Hog Contracts Expected to Open Under Pressure
The lean hog pit should open lower, pressured by defensive cash sales and
sinking product sales. Cattle futures seem set to start somewhat in the red
thanks to residual selling and cash uncertainty.
By John Harrington
Cattle: Steady Futures: 10-30 LR Live Equiv $154.03 + 0.38*
Hogs: Steady-$1 LR Futures: 50-100 LR Lean Equiv $129.50 - $2.68**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Packer inquiry in cattle country could begin to slowly improve this morning.
We should at least start to see some definition in terms of preliminary bids.
Yet significant trade volume will probably be delayed until Thursday or later.
Asking prices remain firm at $149-150 in the South and $242-243 plus in the
North. Live and feeder futures are expected to open moderately lower, checked
by light follow-through selling and uncertain cash prospects.
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