By DTN/The Progressive Farmer
Mon 19 Aug 2013 07:01:00 CT
DTN Early Word Opening Livestock 08/19 06:17
Live Cattle Seem Set for Firm Opening
The cattle complex is likely to start moderately higher, supported by
stronger feedlot sales and technical buying. Lean hog should open on a mixed
basis thanks both defensive fundamentals and shot covering.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$2 HR Futures: 10-30 HR Live Equiv $134.53 + 0.41*
Hogs: 0.50-$1 LR Futures: mixed Lean Equiv $111.69 + 0.98**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Encouraged by the trend of the last several weeks, cattle feeders are
hopeful that the last summer cash rally can be sustain at least through the
balance of August. Asking prices are likely to start out around $125-126 in the
South and $202-plus in the North. Early-week activity will be typically limited
to the distribution of new showlists. CME officials announced Friday afternoon
the posting of 17 delivery certificates, 10 new ones and seven retendered for
$1 (all at Dodge City). Live and feeder contracts should open moderately
higher, supported by greater packer spending and pre Labor Day beef demand.
View All Market Commentary
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.