DTN Early Word Opening Livestock 08/17 06:01

DTN Early Word Opening Livestock 08/17 06:01
Livestock Futures Staged For Early-Session Price Pressure

Live and feeder futures should open solidly lower, checked by spiller
selling and struggling product demand. Live hog contracts are likely to begin
under pressure as well thanks to sharply lower carcass value and generous
country offerings.

By John Harrington
DTN Livestock Analyst

Cattle: Steady/weak with Wed Futures: 50-100 LR Live Equiv $134.78 – .61*
Hogs: Steady-$1 LR Futures: 50-100 LR Lean Equiv $ 97.08 -2.30**

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

GENERAL COMMENTS:

Light cattle trade surfaced in parts of the North at midweek with live and
dressed deals marked $110 to $111 and $175 to $177, respectively (i.e., off $4
to $5 and $7 to $9). We expect more of the same in the North Thursday with
southern business at least getting off the ground. Look for opening bids around
$110 in the South and $175 to $177 in the North. Asking prices should start
around $113 plus in the South and $180 to $182 in the North. Live and feeder
futures should open at least moderately lower, pressured by follow-through
selling and lackluster signs of beef demand.