DTN Early Word Opening Livestock 06/19 06:19
Hog Contracts Staged for Opening Strength
The lean hog board should open moderately higher, supported by surging
carcass value and the large premium of the cash index. Cattle futures are
likely to start out mixed as traders slowly position ahead of late-week cash
and on-feed news.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$2 LR Futures: mixed Live Equiv $136.64 - 0.24*
Hogs: Steady-0.50 HR Futures: 10-30 HR Lean Equiv $114.93 +$2.61**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Market watchers could see a few preliminary cattle bids tossed out midweek,
but we assume that buying interest in general will be no better than lightly
scattered. Though packers may be short bought, the strategy of late-week
shopping has proven fairly successful since Memorial Day, and they're likely to
stay with a winner. Nominal asking prices should be restated $3-4 over spot
June. Live and feeder contracts should begin on a mixed basis as bulls and
bears, specs and commercials, position ahead of late week news.
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