DTN Early Word Opening Livestock 12/14 05:37
Cattle Paper Open Mixed Tied to Uncertain Friday Cash Magic
Live and feeder contracts are likely to open cautiously mixed as traders
consider the likelihood of late-week cash strength. Lean hog issues should also
begin with uneven price action as spot December prepares to expire.
By John Harrington
Cattle: Steady-$2 HR Futures mixed. Live Equiv: $139.79 - 0.23*
Hogs: Steady Futures: mixed Lean Equiv $77.98 +0.73**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cattle traders have arrived back on a Friday with cash business undecided.
Look for that question to be answered by late this afternoon. If recent history
provides a reliable clue, the fed market will print. closer to asking prices
($121-122/$190) than bids ($115/$185-187). But time wiill tell. Live and feeder
futures should open on a mixed basis thanks to a combo of short covering and
slow long liquidation as traders position ahead of actual cash news.
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