DTN Early Word Opening Livestock 01/26 06:03
Meat Futures Set to Open New Week with Mixed Prices
Look for live and feeder contracts to begin this more with mixed price
action thanks to spillover selling on one hand and short covering on the other.
Similarly, lean hog futures also seem set to open on an uneven basis.
By John Harrington
Cattle: Steady to $2 LR Futures: mixed Live Equiv $173.54 - $1.03*
Hogs: Steady to $1 LR Futures: mixed Lean Equiv $ 89.97 - 0.49**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Given the defensive way the 2015 cattle market has started, feedlot golfers
would love to take a mulligan on January and start over. Unfortunately, tough
market rules require that traders "play the ball where it lies." That probably
means that both cattle buyers and sellers will remain on the defensive as the
new week begins, mindful of steep board discounts and eroding carcass value.
Yet this morning's activity will be limited to the distribution of new
showlists. We expect ready numbers will be about steady with last week. Look
for preliminary asking prices to be around $162-163 in the South and $260-plus
in the North. Live and feeder futures seem set to open mixed, pressured by
follow-through selling but supported somewhat by short covering and the smaller
than expected December placement activity.
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