DTN Early Word Opening Livestock 01/22 05:56
Look for Livestock Futures to Open With Moderate Price Strength
The cattle complex should open solidly higher, supported by stronger feedlot
sales on Friday and technical buying interest. Lean hog issues are also likely
to begin Monday with a firm undertone thanks to the premium status of the cash
index and late-week carcass value strength.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $138.54 - .52*
Hogs: Steady Futures: 50-100 HR Lean Equiv $ 86.63 + .77**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
If the government shutdown persists this week, market reporting will be
quite challenging. We'll do our best to pass on information from private
sources regarding cash cattle and wholesale beef sales, but the market picture
will remain quite fragmented and certainly tough to compare with last week. It
remains to be seen how futures will react to the lack of price monitoring by
the USDA. Lets hope Washington finds a way to get things plugged back in as
soon as possible.
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