DTN Early Word Opening Livestock 04/06 05:58

DTN Early Word Opening Livestock 04/06 05:58 Look for Cattle Complex to Open Lower Live and feeder contracts should open at least moderately lower, pressed by follow-through selling and further long liquidation. Lean hog futures seem geared to begin with mixed prices thanks to inconsistent spreading strategies and light short-covering. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 25-50 LR Live Equiv $146.34 + ___FCKpd___0.82 * Hogs: Steady Futures: Mixed Lean Equiv $ 82.03 + $1.07 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Just when we think the cattle board is ready to stabilize, it finds another steep stairway to fall down. Live and feeder futures collapsed on Tuesday with triple-digit losses. This surge of selling was linked to another wave of long liquidation, technical selling, and beef demand worries. A small handful of scattered cash sales surfaced here and there as some producers move to take advantage of strong basis opportunity. Feedlot managers will wait for the CME dust to settle before taking a stab at pricing cattle. If futures can stabilize or basis levels soften, significant trade volume may be delayed until Thursday or Friday. Look for cattle futures to remain on the defensive Wednesday morning, opening moderately lower as specs continue to vacate long positions and technical traders follow the new bearish trend.