News & Resources

DTN Early Word Opening Livestock 05/31 06:44

31 May 2019
DTN Early Word Opening Livestock 05/31 06:44 End of Week and Month Shifts Likely Despite the bearish tone in cattle and hog futures, market moves Friday morning may remain mixed and volatile due to end-of-month position-taking in the complex. Traders are also closely watching for additional direction in grain trade. By Rick Kment DTN Analyst Cattle: Steady to $2.50 Lower Futures: Mixed Live Equiv: $145.40 -0.30* Hogs: Steady to $3 Lower Futures: Mixed Lean Equiv: $ 86.86 -2.63** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Prices appear to be set in cash cattle trade following trade Wednesday and Thursday. This is expected to spark limited additional end-of-the-week movement with some cleanup activity possible, but most feeders are likely to hold off until next week given the bearish moves in futures trade at the end of the week. Live trade was at $115 in the South and $116 in the North, which is generally steady with last week's levels, while dressed trade developed late Thursday at $186 to $187 per cwt, $1.50 to $2.50 per cwt lower than last week. Futures trade remains under pressure following limit losses of $4.50 per cwt in feeder cattle trade, sparking additional bearishness in the entire cattle complex. A combination of follow-through selling pressure and an attempt to cover short positions at the end of the week and month is likely to keep markets moving in a potentially mixed and volatile range.