DTN Early Word Opening Livestock 06/20 06:27
Continued Price Support Likely in Hog Trade
Firm gains developing in lean hog trade Midweek is expected to spark
follow-through buyer support as traders focus on potential upcoming trade talks
with China and hopes that this will improve the chances of a trade deal over
the near future.
By Rick Kment
Cattle: Steady Futures: Mixed Live Equiv $142.97 +0.52*
Hogs: Mixed Futures: Mixed Lean Equiv $82.68 -3.46**
* 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 remains quiet Thursday morning with just a few cattle sold
midweek. This is not enough to establish a market trend with overall activity
near a standstill. Trade will pick up over the next two days, as packer
interest is likely to improve during the day Thursday. Initial bids are likely
to develop in the same range as before, at $109 live and $180-plus on a dressed
basis. Asking prices remain firm at $112 to $115 live and $185 and higher
dressed. It is not unlikely that active trade will be pushed into late Friday
at this point given the recent movements in futures and wholesale beef values.
Firm underlying pressure seen midweek is likely to leave trade mixed with a
combination of follow through pressure and short covering developing during
morning trade. Limited volume is expected early Thursday, which could allow for
wide market price levels until additional interest moves into the complex.
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