DTN Early Word Opening Livestock 01/23 05:56
23 Jan 2018
DTN Early Word Opening Livestock 01/23 05:56 Cattle Paper Set to Open Moderately Higher Live and feeder futures should open moderately higher, supported by follow-through buying and cash market optimism. On the other hand, lean hog contracts seem likely to begin Tuesday with mixed prices thanks to a slow combination residual selling and short-covering. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $138.46 - .08* Hogs: Steady/Firm Futures: Mixed Lean Equiv $ 87.28 + .73** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cattle market watchers are probably set to bet on a typically slow Tuesday with neither bids nor asking prices well defined. Monday's bullish reaction in live cattle futures should further stoke the recent fire of bullish momentum, encouraging feedlot managers to confidently price showlists another $2 to $3 higher on a live basis (e.g., $126 plus). Having said that, feedlot managers may not be in a hurry to suggest asking prices, choosing instead to monitor the board's bullish potential for several days. Our guess is that significant cash business may not surface until Thursday or Friday.