DTN Early Word Opening Livestock 01/24 05:57
Cattle Futures Expected Firm Thursday
Follow-through support is expected to move into live cattle trade during
early trade Thursday. Initial moves in hog trade is likely to focus on
short-covering opportunities as traders attempt to bring stability back to the
complex at the end of the week.
By Rick Kment
Cattle: Steady Futures: Higher Live Equiv: $144.49 -0.41*
Hogs: Steady Futures: Mixed Lean Equiv: $ 73.28 -0.93**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle futures are expected to remain higher during early trade following
strong midweek gains. The ability to push prices higher in feeder cattle
Wednesday is expected to create a combination of follow-through buyer support,
mixed with morning position-taking as traders still remain uncertain about
strong additional gains moving into feeder cattle trade especially at the end
of the month. Live cattle futures are expected to continue to quickly follow
the direction of feeder cattle markets through the day Thursday, but will also
focus on outside market direction shifts through the session. Cash cattle
markets are likely to spark additional market interest, although bids through
most of the morning are expected to redevelop near $122 live and $196 dressed.
Asking prices remain well above current bids at $126 and higher live and $200
dressed. Active trade is probably going to be pushed off until sometime Friday.