DTN Early Word Opening Livestock 09/01 05:52

DTN Early Word Opening Livestock 09/01 05:52 Hog Paper to Open Moderately Higher Thanks to Follow-Through Buying Lean contracts should open moderately higher, supported by follow-through buying and stronger carcass value. On the other hand, live and feeder cattle issues are likely to trade on a mixed basis in the early going tied to residual selling as well as short covering. By John Harrington DTN Analyst Cattle: Steady to $2 HR Futures: mixed Live Equiv $162.54 - .42 * Hogs: Steady to $1 LR Futures: 10-30 HR Lean Equiv $ 90.66 + $1.31 * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Chance are cattle traders are in for a typically quiet Tuesday with bids and asking prices poor defined. Have said that, several packers appear to be quite short bought (e.g., a few bids of $146 were already evident in parts of Kansas on Monday). Furthermore, we assume that both buyers and sellers want to wrap up chores ASAP this week in order to maximize the long holiday weekend ahead. Preliminary asking prices should be around $150 in the South and $232-plus in the North. Live and feeder futures should open on a mixed basis with a combo of spillover selling and short covering.