DTN Early Word Opening Livestock 02/05 06:04

DTN Early Word Opening Livestock 02/05 06:04 Cattle Futures Staged for Firm, Late-Week Opening Live and feeder cattle should open higher Friday, supported by short-covering and positive cash expectations. On the other hand, lean hog contracts should open on a mixed basis tied to a late-week combination of spillover buying and profit-taking. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 10-30 HR Live Equiv $149.73 + .36* Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 80.64 - .71** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: If cattle buyers find it necessary to spend more on live inventory sometime Friday afternoon, it will mark the third consecutive 11th hour of bullishness seen in 2016. Packers are likely to start work Friday with bids of $136 to $138 in the South and $210 in the North. Asking prices will probably be posted around $142 in the South and $215 plus in the North. Given their success in recent weeks, feedlot managers may be encouraged to wait for higher bids through late afternoon. Live and feeder futures are set to open moderately higher, supported by follow-through buying and prospects for greater cash premiums.