DTN Livestock Open: New Week, Mixed Prices
Look for live and feeder cattle futures to open moderately higher, supported by residual buying interest and cash premiums. On the other hand, lean hog contracts are likely to open moderately lower, checked by follow-through selling and sluggish cash prospects.
Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $150.38 + .58*
Hogs: Steady-$1 LR Futures: 25-50 LR Lean Equiv $ 87.01 + .24**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
If you think that “March Madness” is only about college basketball then you haven’t been watching this month’s runaway cash cattle market. Can the feedlot market put together another bullish bracket this week? Our guess is that initial asking prices around $130 plus and $212 to $214 plus will clearly reflect a sure confidence in that exact mission.
Needless to say, nothing will be decided Monday until we have a better sense of new showlists and ready numbers as we move into the second half of the month. Live and feeder futures are staged to open moderately higher, supported by follow-through buying and tall feedlot cash premiums.
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The bulls were again winners in an exciting week for longs and producers. In last week’s report, I said the markets bias would be near unchanged to a bit lower.