DTN Early Word Opening Livestock 07/21 06:06
Meat Futures Staged for Mixed Opening as New Week Begins
The cattle complex seems likely to open this morning with mixed prices
thanks to a combination of residual buying interest and beef demand worries.
Look for the lean hog pit to also begin with uneven price action to be light
bear spreading interest and short covering.
By John Harrington
Cattle: Steady Futures: mixed Live Equiv $170.88 - 0.85*
Hogs: Steady-$1 LR Futures: mixed Lean Equiv $146.33 + 0.46**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Efforts to the cash cattle trade will be naturally limited to the
distribution of new showlists. We expect the new offering to be about steady
with the previous week. Preliminary asking prices should be around $158 in the
South and $250-plus in the North. Beef cut-outs closed significantly lower on
Friday, reflective a defensive tone that some could characterize as typical for
midsummer. Yet production remains extremely light, totaling no more than 460.9
million pounds, a whopping 11.4% below last year. Such severe reduction could
easily work to ensure a firm undertone in the wholesale trade. Live and feeder
futures seem set to open on a mixed basis tied to follow-through buying on one
hand and profit taking on the other.
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