DTN Early Word Opening Livestock 10/28 06:10

DTN Early Word Opening Livestock 10/28 06:10 Cattle Paper to Bounce Higher Tied to Cash Stability Live and feeder futures should open significantly higher, rebounding in the wake of fully steady packer spending on Tuesday. Lean hog contracts seem likely to trade moderately higher in the opening rounds, supported by short covering and spillover buying from the cattle complex. By John Harrington DTN Livestock Analyst Cattle: Higher to $2 HR Futures: 100-200 HR Live Equiv $146.49 + 0.68 * Hogs: Steady to $1 LR Futures: 50-100 HR Lean Equiv $ 88.89 - 0.93 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Extremely limited trade volume last week forced some cattle buyers to shop as early as Tuesday. Light to moderate business was reported in Kansas and Texas with live deals marked at $138, fully steady with last week. Activity in the North seemed more scattered with dressed deals ranging from $207-208, near steady with last week's weighted average basis Nebraska. A large string was sold in Western Nebraska at $138.50. Some packers seem to remain short bought and should be looking to collect more inventory today and/or tomorrow. Look for the balance of show lists to be priced around $142 in the South and $210-212 in the North. CME officials announced that 27 loads were posted for delivery on Tuesday (one heifer, 26 steers, all at Worthing). Live and feeder futures should open significantly higher as the board rebounds from Tuesday's sell-off.