DTN Early Word Opening Livestock 06/19 06:19
Mixed Trade Expected Wednesday
Limited interest is likely early Wednesday as traders continue to reposition
holdings following the moderate swings in prices over the last few days.
Increased demand concerns in hog futures may continue to erode nearby support.
By Rick Kment
Cattle: Steady Futures: Mixed Live Equiv: $142.45 -0.67*
Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv: $ 86.14 -1.82**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Sluggish cash cattle market interest is expected to develop early Wednesday
with increased packer activity likely to develop in most areas through the
morning. Bids are expected to start at levels similar with Tuesday with live
bids of $109, $175 dressed. Asking prices should hold well above these levels
at this point in the week at $112 to $115 live and $185 and higher dressed.
Given the trend for midweek trade over the last couple of months, there is
moderate expectation that at least some deals will be reached before the end of
Wednesday. But, given the back and forth in futures trade, there seems to be
very little urgency to get cash cattle trade accomplished early in the week.
Futures trade is likely mixed with light to moderate interest expected
Wednesday morning. The inability for nearby contracts to hold firm early day
gains Tuesday afternoon is creating expectations that prices may continue to
wander in the moderate trading range seen over the last month. The current $5
trading range gives traders ample room to shift positions without developing
any technical market reaction. This range could hold through most of the summer
as limited fundamental market changes are expected in the near future.
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