The outside markets should contribute to a higher open in livestock futures today.

Filed in Debt, euro, Gold Bullion prices by on May 10, 2010 0 Comments

LEAN HOGS Hog futures rallied sharply on Friday and finished near their session highs. Major resistance levels, however, were not penetrated on the move. Today the outside markets, initially, will provide support to the livestock markets. Thanks to a solid bailout agreement reached in support of Greece and other European nations struggling with their debt, the EC currency is sharply higher, U.S. dollar sharply lower and U.S. stocks are sharply higher as well as crude oil. Fueled solely by the outside markets, look for a higher early trade in hogs on upside follow through from Friday’s rally. Having said that, I’m looking for increasing levels of selling interest to develop on a higher trade early this week. Cash hog prices are called flat to possibly lower for today. It also appears that packers will continue to slow down the kill. Finally, the pork cutout was quoted down .65 on Friday at 89.45. The pork carcass was down .51 last week, not the best performance given the fact that the weekly kill was down 2% from the previous week. Look for a mixed to higher open today. LIVE CATTLE Live cattle futures closed mixed to slightly higher on Friday. The opening should be mostly higher today given the positive influence from the outside markets. Early reports indicate the show list numbers will be slightly smaller this week. The cash steer market was firm to higher last week and the beef continues to edge upward, reaching a new high on Friday above $171. I’m expecting the beef, cash and futures to top out. Last week we turned active in establishing hedges for my producer/clients. Our strategy is a combination of selling futures outright and establishing hedges in the options. Specific details are available by calling or emailing. Look for a higher open mostly based upon the impressive move upward in the U.S. stock market and the lower dollar. If you need help in developing and executing a hedging program for your livestock operation give me a call or send me an email. dennis.smith@archerfinancials.com

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The outside markets should contribute to a higher open in livestock futures today.

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