DTN Early Word Opening Livestock 04/28 09:57

DTN Early Word Opening Livestock 04/28 09:57
Meat Futures are Staged for Further Late-Week Gains

Look for the cattle complex to open substantially higher, supported by
follow-through buying and new cash premiums. Lean hog futures should also
benefit Friday from Thursday’s bullish momentum.

By John Harrington
DTN Livestock Analyst

Cattle: Firm w/Thurs advance Futures: 50-100 HR Live Equiv $146.88.+.22*
Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $ 79.00 +.18**

* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue


Cattle buyers aggressively chased ready steers and heifers on Thursday like
they were on the endangered species list. Live spending reached as high as $138
to $140 with dressed deals as tall as $217 to $219. Trade volume was quite
active in most areas, and we suspect that most business is done for the week.
Whatever remains on showlists are probably picked around $140 in the South and
$220 plus in the North. Live and feeder futures seem staged to open solidly
higher, supported by residual buying interest and new feedlot premiums.