DTN Early Word Opening Livestock 07/22 06:03
Livestock Futures Predicted to Open Mixed
Look for the cattle pit to open with uneven prices this morning thanks to a
slow combination of follow-through buying and profit taking. Lean hog futures
should also begin narrowly mixed tied to the unwinding of bear spears and
uncertain cash expectations.
By John Harrington
Cattle: Steady Futures: mixed Live Equiv $172.26 + $1.38*
Hogs: Steady-$1 LR Futures: mixed Lean Equiv $143.76 - $2.57**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
While we sense that cattle buyers remain generally short bought (pretty much
their default status since before Memorial Day), they're probably not hungry
enough to do anything in the cash market as early as today. Indeed, our guess
if that significant trade volume could be delayed until Thursday or Friday
(possibly not until the release of the July 1 on feed report Friday afternoon).
Preliminary asking prices seem to be around $158 in the South and $250 plus in
the North. Live and feeder futures should open on a mixed basis thanks to
follow-through buying on one hand and light profit taking on the other,
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