DTN Early Word Opening Livestock 09/17 06:28
Mixed Trade Expected Tuesday
Live cattle futures closed lower Monday with October showing only a minor
loss. The chart shows a rounded-top formation, which does not bode well for the
complex. Spread trading between the October and December lean hog contracts
should unwind after two days of selling October and buying December.
By Robin Schmahl
DTN Dairy Analyst
Cattle: Steady Futures: Lower Live Equiv: $141.98 -0.61*
Hogs: Steady Futures: Mixed Lean Equiv: $ 73.46 +0.45**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle trade was nonexistent with only some distribution of showlists.
Bids or offers were not placed as buyers and sellers are unsure of where to
start. Cash trade is expected to be similar to last week. Those who held out,
hoping to see stronger prices and higher futures, were disappointed. More
defined bids and offers should show up Wednesday. Trading Tuesday may set the
tone of the market for the next few days, making it difficult to resume the
uptrend. Cash will need to show strength or futures may set back to the lows.
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