DTN Early Word Opening Livestock 02/16 06:00

DTN Early Word Opening Livestock 02/16 06:00 Lean Hog Issues Slated for Firm Opening Look for hog futures to open moderately higher Tuesday, supported by follow-through buying and constructive fundamentals on Monday. On the other hand, the cattle complex may not begin any better than mixed thanks to a slow combination of residual selling and early-week short-covering. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: Mixed Live Equiv $145.39 -$0.26* Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 80.91 +$0.59 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: After two rough weeks of falling prices, feedlot managers are intent on finding market brakes. Tight fed supplies and decent processing margins should help the quest for greater stability. Yet outside markets and board discounts (read strong basis levels) could once again prove to be difficult barriers in that regard. Besides initial posturing along these lines, look for a very slow and quiet cash session Tuesday. Our guess is that initial asking prices will be around $135 to $136 in the South and $212 to $214 in the North. Significant trade volume will probably be delayed until Thursday or Friday. Live and feeder futures seem set to open on a mixed basis linked to follow-through selling on one hand and short-covering on the other.