DTN Early Word Opening Livestock 01/15 06:15
Firm Pressure Expected in Morning Trade
Follow-through weakness is expected to be seen in early trade as longer-term
market uncertainty and demand issues continues to add to trader concerns.
By Rick Kment
Cattle: Steady Higher Futures: Mixed Live Equiv $140.93 -0.37*
Hogs: Mixed Futures: Mixed Lean Equiv $75.77 +0.23**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle activity is expected to remain extremely sluggish through the
morning with bids and asking prices yet to be established. At this point, it is
likely to be midweek before any definition is seen from either side with active
cash cattle trade potentially pushed into Friday once again. Live cattle
futures are expected mixed to moderately lower, although the firm support in
spring contracts over the last couple of trading sessions is likely to bring
some market stability to the complex. February and April contracts inched
higher Monday, setting contract highs, allowing many traders to see if follow
through buying will support in the opening minutes of trade.
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