DTN Early Word Opening Livestock 03/18 05:42
Continued Hog Strength Leaves Uncertainty
Limit gains in lean hog futures Friday is sparking increased underlying
support through the entire livestock complex, although continued market
strength may come with short-term market corrections.
By Rick Kment
Cattle: Steady Futures: Higher Live Equiv: $149.63 -0.63*
Hogs: $1 Higher Futures: Higher Lean Equiv: $ 73.35 +0.06**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Sharp triple-digit gains late last week has sparked increased underlying
support through the entire complex. Weather and flooding concerns are still the
main focus through most of the northern part of cattle country. Not only are
many feed years underwater, with no idea of how many cattle have been washed
away or killed, but the inability to get through many highway systems has kept
much of cattle country in a limbo. The inability to move cattle will
significantly impact overall packer activity through the week and had an impact
on the overall amount of cattle sold last week on negotiated trade.
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