DTN Early Word Opening Livestock 04/24 06:06
Cattle Futures Staged for Mixed Opening
Look for the cattle contracts to open on a mixed basis, torn between cash
premiums and bearish on feed news. Lean hog futures also seem set for uneven
price action in the early rounds with light trade volume.
By John Harrington
DTN Livestock Analyst
Cattle: Steady to $2 HR Futures: Mixed Live Equiv $145.58 + .63*
Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 80.82 + .88**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Is the spring rally in fed cattle just warming up or ready to run out of
gas? That will be a big question as buyers and sellers move into the last week
of April. Needless to say, activity in the cash cattle trade will be typically
limited to the collection of new showlsts. The new offering is expected to be
steady to larger than last week. While ready steers and heifers will probably
remain unpriced until later in the week, our guess is that bullish producers
will be thinking around $135 plus in the South and $215 to $217 in the North.
Live and feeder futures should open on a mixed basis with nearby supported by
recent feedlot sales and deferred pressured by the larger-than- expected March
placement announced on Friday.
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