DTN Early Word Opening Livestock 05/23 06:22
Meat Futures Likely to Open Moderately Lower
Live and feeder contracts are set to begin moderately lower, pressured by
follow-through selling and cash nervousness. Hog futures should also start out
some lower as specs and commercials take profits in the wake of Wednesday's
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$1 LR Futures: 10-30 LR Live Equiv $142.27 + 0.03*
Hogs: Cash 0.50 HR Futures: 10-30 LR Lean Equiv $101.35 + 0.65**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
General Comments: Light to moderate cattle trading surfaced in parts of
Texas and Kansas yesterday (i.e., $124, $1 lower). The big question is now
whether Wednesday's action represented enough of a crack in general feedlot
psychology to essentially set the cash trend for the week. Look for packer bid
this morning to start out around $123-124 in the South and $200 in the North.
Asking prices should be restated around $126-plus in the South and $203-205 in
the North. It's certainly possible that further business will be delayed until
Friday. Live and feeder futures should open some lower, pressured by residual
selling and uncertain cash potential.
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