Thursday, April 11, 2013

DTN Early Word Comments on Livestock


   Livestock Futures Ready for Mixed Opening

 The cattle complex is likely to open with uneven price actions thanks to residual selling and short covering. Hog futures should also start out on a mixed basis tied in part to light bull speading.
 By John Harrington DTN Livestock Analyst
Light to moderate cattle trading surfaced in Kansas and Texas yesterday with most deals marked at $127, $1 lower than last. While it’s possible that Southern business may be essentially done for the week, trade volume in the North is still waiting to get off the dime. Showlists are prices around $128-plus in the South and $205-plus in the North. Look for live and feeder contracts to open mixed with the latter losing more ground on the former. Anticipate another round of steady/firm bids as relatively short bought hog buyers work to complete last week kill needs and put more starters into next week. The Saturday slaughter will now be somewhat larger, possibly as much as 50,000-60,000 head, in order to make-up for Wednesday weather-slowed kill. Lean futures are set to begin with uneven price action.
Cattle: Cash Steady-$1 LR Futures: mixed Live Equiv $133.35 -0.60* Hogs: Cash Steady-0.50 HR  Futures: mixed Lean Equiv $ 89.60 +0.65**

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 http://sweetfutures.com/2013/dtn-early-word-comments-on-livestock/

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.