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DTN Early Word Opening Livestock 09/10 05:27
Hog Futures Should Open With Mixed Prices
Lean hog contracts are likely to start out on a mixed basis, scattered by a
combination of spillover buying and late-week profit-taking. Live and feeder
futures should also open with mixed prices, though feeders could be primarily
lower if corn reports look friendlier than expected.
By John Harrington
DTN Livestock Analyst
Cattle: Cash Steady/Firm Futures Mixed Live Equiv $110.65 - .53*
Hogs: Cash Steady-.50 HR Futures Mixed Lean Equiv $96.36 - .69**
* new formula estimating live cattle equivalent of gross packer revenue
** new formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
The early September hog market has been surprisingly firm, and we expect
late-week bids to continue in that regard. Indeed, country sources suggest some
plants will still be working to put barrows and gilts into aggressive Saturday
plans. Since several players now want to make up for production problems that
surfaced on Wednesday, Saturday's slaughter could be as large as 265,000 head.
While packers could still be short-bought next Monday, buyers could close their
wallets if the fresh pork trade continues to deteriorate. Lean hog futures are
projected to open mixed thanks to follow-through buying interest on one hand
and profit-taking on the other.
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