DTN Early Word Opening Livestock 11/21 06:11
Sluggish Pre-holiday Trade Expected Wednesday
Limited market activity is expected Wednesday with traders focusing on
squaring positions and limited market volume through the end of the week.
By Rick Kment
Cattle: Steady Futures: Steady Live Equiv: $140.26 +0.23*
Hogs: $1 Lower Futures: Mixed Lean Equiv: $ 70.57 +4.57**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle activity remains at a standstill going into Wednesday morning
with packers and feedlot managers unwilling to show their hand at this point.
But with both sides betting on getting business done by the end of the day, it
is expected that activity through the day will be much improved. Although
asking prices are still not easy to pin down, the expectation that most cattle
will be priced at $117 and higher live and $178 to $180 dressed. If deals
cannot be done by the end of the day, both sides will step back into the market
Friday, this could significantly disrupt Black Friday plans, which may not bode
well for price levels at that point. Futures trade is expected to remain mixed
to mostly steady early in the session as traders seem unwilling to jump on the
selling bandwagon following sharp outside market losses. Trade through the rest
of the week is expected to remain sluggish.
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