DTN Early Word Opening Livestock 11/06 06:26

DTN Early Word Opening Livestock 11/06 06:26 Meat Futures Should Open Mixed Thanks to Residual Selling, Late-Week Short-Covering The cattle complex is set to open on a mixed basis linked to a cautious combination of follow-through selling and pre-cash short-covering. Lean hog contracts are also likely to trade uneven prices in the early rounds thanks to spillover bearishness and late-week profit-taking. By John Harrington DTN Livestock Analyst Cattle: Cash Steady-$2 LR Futures Mixed Live Equiv $146.30 - .70* Hogs: Cash $1-$2 LR Futures Mixed Lean Equiv $80.21 - .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: A disappointing round of light to moderate business developed Thursday in parts of the Northern tier of cattle feeding country. Sharply lower futures proved to be corrosive on some asking prices. Dressed sales ranged between $205 and $206, generally $4 to $5 below last week's weighted average basis Nebraska. Some live deals were marked at $130, $6 to $7 lower than the area's last test. The South remained untested. Look for another round of light to moderate business to develop sometime today, especially in Kansas and Texas. Much will depend upon the board's ability to stabilize and market psychology to be contained. Initially asking prices should be around $138-plus in the South and $206 to $208 in the North. Live and feeder issues seem geared to open on a mixed basis tied to follow-through selling on one hand and short-covering on the other.