DTN Early Word Opening Livestock 01/15 05:52

DTN Early Word Opening Livestock 01/15 05:52 Cattle Paper Set for Mixed Late-Week Opening Live and feeder futures are likely to open on a mixed basis, torn between spillover selling and late-week short-covering. On the other hand, lean futures should trade with a firm undertone in the early going, supported by follow-through buying and sharply higher carcass values. By John Harrington DTN Livestock Analyst Cattle: Steady w/Thurs Futures: mixed Live Equiv $157.39 + .07* Hogs: Steady Futures: 10-30 HR Lean Equiv $ 76.21 +$1.49** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Given the fact that fed cattle sales turned out to be generally moderate on Thursday (ranging from light in part of the North and fairly active in Kansas), our guess is that the lion's share of country business is essentially completed. That's not to say that we couldn't see scattered examples of clean-action Friday. Yet last-minute deals are unlikely to exceed the prices recorded on Friday (i.e., $134 in the South, $209 to $210 in the North). Having said that, packer bids in the North on Thursday seemed to be on the fade, perhaps partly tied to struggling futures and/or the muddy conditions of some cattle. Unsold cattle still on showlists are priced around $135 in the South and $212 in the North. Live and feeder contracts should open on a mixed basis thanks to a combination of residual selling and short covering.