DTN Early Word Opening Livestock 08/22 06:05
Follow-Through Cattle Support Expected
Limited but firm support is likely to redevelop in cattle futures as traders
attempt to slowly but steadily move back into the oversold market structure.
Hog futures are expected generally weak following aggressive losses Wednesday.
By Rick Kment
Cattle: Steady to Higher Futures: Higher Live Equiv: $154.99 +0.37*
Hogs: Lower Futures: Mixed Lean Equiv: $ 86.10 -2.67**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle activity through the rest of the week will become a larger focus
of the market as packer bids have been generally quiet through the first half
of the week. A few cattle were sold in the South at $105 to $107 and $172 to
$175 in the North Wednesday afternoon, but this is not enough movement to
establish any sense of market trend at this point. Packer interest is expected
to improve through the day, although active trade may be delayed until sometime
Friday, and potentially after the Cattle on Feed report Friday afternoon.
Asking prices remain at $108 in the South and $178 in the North. Futures trade
is expected to open steady to higher with limited but supportive follow-through
buying moving into the complex. The ability to add consistent but firm support
to the weak market complex continues to add uncertainty to the entire complex
as traders focus on trying to rebuild following last week's losses and
establishing fundamental and technical support through the end of the week.
For more free DTN information sent right to your email each morning - click here
to sign up for DTN Snapshot.