DTN Early Word Opening Livestock 10/30 06:04
Meat Futures Staged for Mixed Opening
Look for cattle contracts to begin on a mixed basis as traders position
ahead of cash news. Lean hog futures should also open on a mixed basis thanks
to a combination of spillover selling and short covering.
By John Harrington
Cattle: Steady-$2 HR Futures: mixed Live Equiv $172.67 + $1.01*
Hogs: $1-2 LR Futures: mixed Lean Equiv $107.21 + $1.63 **
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle buying should slowly start to improve this morning as short bought
packers consider short term slaughter needs. Yet given higher asking prices
(i.e., $172-173 in the South; $270 plus in the North) and bullish feedlot
resolve significant trade volume could be delayed until sometime Friday. Live
and feeder futures should open with mixed prices in slow volume as traders
cautiously position ahead of late week cash business.
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