DTN Early Word Opening Livestock 02/01 06:02

DTN Early Word Opening Livestock 02/01 06:02 Cattle Futures Set for Strong Early Week Opening Live and feeder contracts are staged to open significantly higher, supported by greater packer spending late Friday and the threat of winter weather. Lean hogs should begin with moderately firm price action thanks to constructive fundamentals. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 100-200 HR Live Equiv $147.85 - .02* Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $ 81.13 + .13** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cattle buyers and sellers will start the week keenly focused on two unfolding realities: 1) the reaction of futures to surging feedlot sales late Friday; and 2) the severity of a major winter storm forecast for much of the central Plains over the next several days. While Southern cash business jumped as much as $3 to $4 (i.e., $138) just before the weekend, trade volume totals seems no larger than moderate. We are eager to see actual totals when Livestock Mandatory Price Reporting issues definitive reports in that regard later Monday morning. Pre-storm, early week activity will be limited to the distribution of new showlists. Our guess is that the new offering will be about steady, though it's tough to say given the possible combination of leftovers from last week and cattle marketing adjusted linked to weather fears. Asking prices could remain poorly defined until the second half of the week. But it seems like a good bet that feedlot managers will not be shy, possibly pricing steers and heifers as much $3 to $5 higher on a live basis. Live and feeder futures seem set to open significantly higher, supported by impressive cash strength and a pending major winter storm.