DTN Early Word Opening Livestock 08/20 05:55

DTN Early Word Opening Livestock 08/20 05:55 Look for Cattle Futures to Open Mixed Live and feeder contracts are likely to begin with mixed prices thanks to follow-through selling on one hand and profit taking on the other. Lean hog futures also seem ready to open on an uneven basis with ideas torn between the large premium of the cash index and wholesale product weakness. By John Harrington DTN Analyst Cattle: Steady Futures: mixed Live Equiv $165.33 + 0.68* Hogs: Steady to $1 LR Futures:mixed Lean Equiv $ 93.30 - $1.85** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: While we thought that cash cattle trading might surface somewhat earlier this week given the lack of business, the fact that significant sales developed as early as Wednesday proved to be surprising. But the ugly reality of lower prices was an even bigger surprised. Spooked by sharply lower futures, Northern feedlot managers gradually began to accept lower packers bids. By the end of the day, trade volume totals in Nebraska and Iowa were substantial with most dressed deals ranging from $232 to $234, roughly $4-6 lower than last week's weighted average basis Nebraska. Live sales ranged from $148-149, generally $2-3 lower. Given decent trade volume, business in the North could be essentially done for the week.