DTN Early Word Opening Livestock 07/15 06:23
Limited Mixed Trade Expected Early Monday
Light activity is expected to redevelop during early-week trade although
limited volume is likely during the first couple of hours. Initial market
direction is likely to be hard to pin down due to follow-through buying and
position taking developing in lean hog and live cattle trade.
By Rick Kment
DTN Analyst
Cattle: Steady Futures: Mixed Live Equiv: 136.80 -0.63*
Hogs: Mixed Futures: Higher Lean Equiv: $76.51 -0.48**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
Cash cattle interest is expected to remain undeveloped Monday morning
following light trade that trickled into the complex late last week. With firm
cash price developing by the end of last week, further support is expected as
the month progresses. Showlist and inventory taking will be the main agenda
Monday with most trade expected to be pushed to the last half of the week.
Futures trade is expected to open mixed following limited end-of-the-week
support in live cattle while feeder cattle futures focus on the short-term
correction last week. This may allow for additional trade adjustments through
the morning until volume increases. A firm underlying tone continues to develop
in live cattle trade, focusing on firm outside market support that has
developed in the last couple of weeks. This is likely to spark renewed
expectations of stronger longer-term beef demand as expectations of overall
supportive markets continue to develop the next couple of months.
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