DTN Early Word Opening Livestock 08/21 06:03
Cattle Futures Staged for Further Selling
Live and feeder cattle futures are set to open moderately lower, checked by
residual selling interest and sputtering feedlot business. Lean hog contracts
seem likely to open under pressure as well thanks to sinking fundamentals.
By John Harrington
Cattle: Stdy-wk w/Wed Futures: 50-100 LR Live Equiv $172.95 - 0.78*
Hogs: $1-2 LR Futures: 50-100 LR Lean Equiv $115.95 - $2.41**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Light to moderate cattle trading surfaced in most areas yesterday as sharply
lower futures prompted some feedlot managers to reconsider the appropriateness
of higher asking prices. Most dressed deals in the North were marked at $242,
approximately $3 lower than last week's weighted average basis Nebraska. Live
business in the South took place at $152, $3 lower than the bulk of area trade
last week. There are still plenty of cattle to sell before packers can call it
a week. But late-week price potential will probably depend upon the ability of
the board to stabilize. Our guess is that those sellers willing to wait for
another day or so before pulling the trigger will prices showlists this morning
around $244-245 in the South and $155 plus in the South. Live and feeder
futures should open moderately lower, limited by follow-through selling and
fears of faltering feedlot leverage.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.