DTN Early Word Opening Livestock 02/15 06:21
Hog Futures Test Support
Limited pressure may slowly develop through lean hog trade Friday morning as
traders focus on fundamental market weakness.
By Rick Kment
DTN Analyst
Cattle: Steady Futures: Mixed Live Equiv $143.72 -0.54*
Hogs: Steady to 50 cents Lower Futures: Lower Lean Equiv $67.26 -1.12**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
Cash cattle trade has once again made it to the end of the week with limited
to no market activity developing. Packers will once again have their hands full
trying to buy cattle as they are expected to remain extremely short bought once
again. Bids are expected to start similar to earlier offers, at $122 live and
$198 to $200. But without a major shakeup in futures trade or outside markets,
feedlot managers are unlikely to show any interest. Asking prices are holding
at $126 to $127 live and $203 and higher dressed. At this point, it could be
late in the day before most trades are in the book. Futures trade is expected
mixed with the late day support seen Thursday bringing some underlying strength
to the market. End-of-week positioning is expected to be the main order of
business most of the day Friday as traders may continue to wander in the
current market range.
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