DTN Early Word Opening Livestock 02/25 06:02

DTN Early Word Opening Livestock 02/25 06:02 Livestock Futures Likely to Open With Firm Undertone Expect the cattle complex to hold moderately higher, supported by spillover buying and stronger carcass value. Lean hog issues should also begin on a firm basis thanks to technical buying and stronger cash sales. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 10-30 HR Live Equiv $146.70 + $1.30* Hogs: Steady-$1 HR Futures: 10-30 HR Lean Equiv $ 79.34 - $0.70** * 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 buying interest could improve Thursday with more initial bids evident across the feeding area. However, the bullish combination of board premiums and sharply higher beef cutouts will cause feedlot managers to dig in their heels in terms of higher asking prices (i.e., $138 to $140 in the South; $215 plus in the North). Such resolve could easily delay the development of significant trade volume until sometime Friday. CME officials reported five deliveries against February live cattle on Wednesday, two new ones (steers at Pratt), and three retendered at $2 (steers at Worthing, demanded). Live and feeder futures seem set to open moderately higher, supported by follow-through buying and firm cash expectations.