DTN Early Word Opening Livestock 07/27 06:04

DTN Early Word Opening Livestock 07/27 06:04 Cattle Paper Set to Open With Moderate Strength Live and feeder futures seem geared to open moderately higher, supported by spillover buying and improving carcass value. On the other hand, lean hog contracts seem likely to begin somewhat lower, checked by defensive fundamentals and technical bearishness. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $135.05 + .95* Hogs: Steady-$1 LR Futures: 25-50 LR Lean Equiv $ 92.06 -2.38** * 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 should slowly start to take form Wednesday with preliminary bids around $183 to $185 in the North and $113 to $114 in the South. Yet it's unlikely that such cautious efforts will generate any selling interest, given recent board behavior suggesting that a significant seasonal market bottom is at hand. Our guess is the initial asking prices will be around $190 plus in the North and $118 plus in the South. Live and feeder futures should open moderately higher, supported by follow-through buying and the premium status of recent feedlot sales.