Live and feeder futures should open solidly higher, supported by aggressive packer spending in the country and follow-through buying. Lean hog contracts are likely to begin on a mixed basis with nearbys holing up better than deferrds
Cattle: Sty/fr with Thurs Futures: 50-100 HR Live Equiv $137.63 + .91* Hogs: Steady-.$1 LR Futures: mixed Lean Equiv ___FCKpd___0nbsp; 86.36 – $1.18**
* based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue
GENERAL COMMENTS:
In a shocking display of packer hunger for ready cattle, the feedlot trade suddenly exploded on Thursday. Dressed sales in Nebraska and Iowa were marked fully $10 higher at $190. Live deals in Colorado and Western Nebraska were made at $118, $2-3 higher. On the other hand, cash business in the South remained at a standstill as bullish producers passed bids as high as $118, holding for $121 or better. So while Northern trade could be done for the week, we expected at least moderate trade volume will finally surface sometime today before buyers and sellers call it a week and year. Live and feeder futures should open significant higher, supported by cash strength and follow-through buying.
