DTN Early Word Opening Livestock 03/23 06:02

DTN Early Word Opening Livestock 03/23 06:02 Hog Contracts Set to Open Moderately Higher Look for lean hog futures to open moderately higher, supported by follow-through buying and short-covering. On the other hand, cattle paper should begin moderately lower, checked by residual selling and further long liquidation. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 10-30 LR Live Equiv $152.31 - $1.43* Hogs: Steady-$1 HR Futures: 10-30 HR Lean Equiv $ 80.95 - $0.60** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Feedlot psychology is clearly being stressed this week thanks to the imploding behavior of cattle futures. With spot April live starting midweek $3 to $4 below the last cash test, such a strong basis will make it very tough for sellers to hold for steady prices, let alone higher ones. On the other hand, feedlot managers may play it tough for another day or so, encouraged by the successful leverage they've commanded over the last three weeks. Needless to say, producers are hoping the board finds stability and starts bouncing back toward the highs of last week. We could see a few more bids surface Wednesday morning, say around $134 to $135 in the South and $216 in the North. Asking prices may stay poorly defined until Thursday or Friday. Ideally, both sides would like to wrap up business by Thursday, allowing for a long holiday weekend. Yet this week's screwy market vibration may make an early exit all but impossible. Live and feeder futures seem geared to open moderately lower, pressured by follow-through selling and long liquidation.