Thursday, June 21, 2018  
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DTN Early Word Opening Livestock       06/21 06:12
   Look for Meat Futures to Open Thursday With Uneven Price Action

   The cattle complex should open on a mixed basis as traders position ahead of
cash news and the June 1 Cattle on Feed report. Lean hog issues are also
expected to begin with uneven price action thanks to a cautious combination of
residual selling and short-covering.

By John Harrington
DTN Livestock Analyst

Cattle: Steady-$2 LR   Futures: Mixed  Live Equiv:  $142.88  - .76
Hogs: Steady-$1 LR     Futures: Mixed  Lean Equiv:  $ 90.15  + .17**

* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue


   Cattle buyers should quickly restate the bids posted Wednesday (i.e., $108
live in the South, and $173 to $175 dressed in the North), and then sit back
and watch the board for at least an hour or two. They'll no doubt be hoping
that significant board weakness will help their cause. Yet if futures don't
cooperate that way, or even manage to move higher, packers may soon be forced
to start hiking bids toward country asking prices of $115 live and $183
dressed. An extension of the impasse could certainly be pushed into Friday, but
we're guessing that short-bought buyers need to make something happen sooner
rather than later. Live and feeder futures are likely to open on a mixed basis
as traders position before the development of cash news.
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