DTN Early Word Opening Livestock 02/16 05:52
Follow-Through Buying Likely in Cattle Trade
Moderate-to-strong buyer activity is developing through the cattle complex
over the last couple of days. This may add even more buyer activity during the
end of the week. Hog trade remains unsettled as the back and forth market
shifts, adding to the volatility in the complex.
By Rick Kment
Cattle: Steady Futures: $1 Higher Live Equiv $140.90 +0.75*
Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv $ 82.13 -0.53**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle trade activity has been undeveloped so far this week, but with
packers and feeders entering the home stretch once again, the expectation is
that swift and quick trade will develop late in the day. Packers and feeders
continue to remain well rooted in their positions through the week, limiting
additional expectations of a significant shift in direction, in activity or
price levels. Futures trade is expected to open higher once again, although the
potential for moderate position-taking is increasing due to the active support
in the complex over the last several weeks.
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