DTN Early Word Opening Livestock 01/17 06:08
17 Jan 2018
DTN Early Word Opening Livestock 01/17 06:08 Cattle Paper Expected to Open Under Pressure Live and feeder contracts are likely to open under selling pressure sparked by struggling wholesale beef prices and ongoing technical concerns. On the other hand, lean hog issues should open higher thanks to follow-up buying and recent gains in the cash index. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 50-150 LR Live Equiv $138.68 - $1.46* Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $ 85.90 - 0.38** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Packer inquiry in cattle country could start to improve at midweek. But if the board remains relatively stable/firm, our guess is that feedlot managers will dig in with higher asking prices (e.g., $122-123 in the South; $195-plus in the North) until Thursday or Friday. Live and feeder futures should open significantly lower, checked by faltering carcass value and uncertain cash potential.