DTN Early Word Opening Livestock 10/21 06:52
Live Cattle Traders Look for Additional Price Support Friday Morning
Traders in live cattle futures have access to expanded trading limits Friday
morning following the limit higher trade seen Thursday. The potential for
market shifts remains ahead of the Cattle on Feed report. Hog futures are
expected to remain stuck in a narrow trading range during early Friday trade.
By Rick Kment
Cattle: Steady Futures: Higher Live Equiv $121.16 - 0.52*
Hogs: Steady to $1 LR Futures: Mixed Lean Equiv $ 77.68 - 0.49**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle market activity is expected to go back to the drawing board
Friday morning with light trade developing Thursday at $98 per cwt live basis
and $154 per cwt dressed. But as live cattle futures surged higher through the
morning, the ability to buy cattle at this point ended abruptly, with packers
not showing any additional bids through the day. Bids are expected to develop
through the morning with asking prices likely to hold previous values of $100
to $102 in the South and $160 in the North. It is quite possible that active
trade may not be seen until after the release of the Cattle on Feed report.
Futures trade is expected to remain mostly higher as follow-through buyer
support is likely to create moderate momentum. Even though live cattle futures
have expanded trading limits of $4.50 per cwt to work with, it is quite
possible that markets will remain grouped in a tight trading range.
For more free DTN information sent right to your email each morning - click here
to sign up for DTN Snapshot.