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DTN Early Word Opening Livestock       08/21 06:10
   Meat Futures Primed to Open Week Moderately Lower

   Look for live and feeder futures to resume trading Monday at least
moderately lower, pressured by further long liquidation and struggling carcass
value. Lean hog contracts are also likely to begin on the defensive in the face
of growing supplies and softening pork demand.

By John Harrington
DTN Livestock Analyst

Cattle: Steady-$2 LR   Futures: 50-100 LR   Live Equiv $132.71  - 1.15*
Hogs:   $1-2 LR        Futures: 50-100 LR   Lean Equiv  $95.64  - 1.86**

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


   Earlier this spring, midday darkness tied to a total eclipse of the sun
might have spooked bullish psychology in cattle country. But given how gloomy
cash and futures have been in recent weeks, the early-week market may not give
Monday's solar totality much notice. Of course, even if the sun was scheduled
to put in a normal day's work, feedlot country would be typically slow with the
distribution of new showlists about the only thing on the agenda. We believe
the fed offering will be about steady with last week. Cattle feeders would
probably like to price steers and heifers steady to $2 higher than last week to
start the week (e.g., $110 to $112 on a live basis), but much will depend upon
the stability of futures and beef cutouts. Live and feeder futures are expected
to open lower Monday, pressured by residual selling interest, technical
concerns and uncertain product demand.
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