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DTN Early Word Opening Livestock 05/24 06:33
Limited Livestock Trade Expected Friday
Market interest is expected to remain extremely sluggish Friday ahead of the
three-day holiday weekend. Mixed trade is expected early in the session with
cattle traders attempting to adjust to the upcoming cattle on feed report.
By Rick Kment
DTN Analyst
Cattle: Steady to $2 Lower Futures: Mixed Live Equiv $143.79 +053*
Hogs: Steady Futures: Mixed Lean Equiv $87.63 -2.21**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
Following moderate trade over the last two days, cash cattle markets appear
to be essentially done for the week. Although the potential for some clean up
trade may develop, the tone of the market is expected to be set with prices at
$114 to $116 live and $184 to $185 dressed. Generally cash prices for the week
were steady to $2 per cwt lower depending on the area of the country and
delivery terms for cattle sold. Futures trade is expected mixed as traders
adjust to outside markets early Friday but quickly turn attention to the
upcoming cattle on feed report where pre-report expectations point to a strong
shift higher in overall cattle in feedyards as well as increased placement
levels. If the report is anywhere near the early estimates, a bearish tone is
expected to hover through the complex. A portion of this bearishness has
already been worked through market prices, but increased volatility early next
week may quickly develop.
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