DTN Early Word Opening Livestock 03/22 05:53
Oversold Cattle Futures Ripe for Late-Week Bounce
Look for the cattle complex to adjust moderately higher on the opening,
cautiously supported by short-covering/profit-taking and pre-report
positioning. Lean hog futures should open narrowly mixed in low volume.
By John Harrington
DTN Livestock Analyst
Cattle: Steady w/Wed Futures: 50-100 HR Live Equiv $149.45 + .34*
Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 76.52 - .62**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Light-to-moderate trade volume surfaced again in the northern tier of
cattle-feeding country with dressed and live prices about $2 lower than last
week (mostly $203/$126), though close to steady with Tuesday. While clean-up
action is possible Thursday and Friday, we suspect the lion's share of cash
business is done for the week. The balance of showlists are priced around $125
to $126 in the South and $204 plus in the North. Live and feeder futures should
close moderately higher, initially supported by short-covering and interest in
correcting oversold charts.
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