DTN Early Word Opening Livestock 03/16 06:39
Tariff for Beef to Japan to Decrease by End of March
Look for live and feeder contracts to open mixed this morning thanks to a
combination of residual selling and late-week short-covering. Lean hog futures
should also begin with uneven price action with deferreds probably gaining more
ground on spot April.
By John Harrington
DTN Livestock Analyst
Cattle: Steady-firm w/Tues Futures: mixed Live Equiv $149.73 + 0.12*
Hogs: Steady Futures: mixed Lean Equiv $ 77.85 + 0.51**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
The cash cattle trade could be rather slow today, limited to clean-up deals
in parts of the North. Frankly, we were surprised when mandatory reported more
than 10,000 head traded on Thursday. That level of business flew under our
radar. Whatever. Week-to-date trade volume in all areas may now be sufficient
to essentially call it a week. What unsold steers and heifers remain unsold
seem to be priced around $128 to $129 live and $207-plus. Live and feeder
futures should open on a mixed basis thanks to follow-through selling on one
hand and late-week short-covering on the other.
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