DTN Early Word Opening Livestock 08/02 06:16

DTN Early Word Opening Livestock 08/02 06:16 Meat Futures Set to Open Moderately Higher Look for the cattle complex to open moderately higher, supported by follow-through buying and recent cash premiums. Lean hog issues also seem likely to work higher in the early going thanks to short-covering and oversold charts. By John Harrington DTN Livestock Analyst Cattle: Cash Steady-$2 HR Futures 25-50 HR Live Equiv $133.94 + .21* Hogs: Cash Steady-$1 LR Futures 25-50 HR Lean Equiv $85.01 + .08** * 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 market Tuesdays are typically a case study in slow motion, and today should be no exception. We expect both bids and asking prices to remain poorly defined. Having said that, it's a good bet that feedlot managers are prepared to price ready steers and heifers sharply higher (e.g., $120 to $122 basis the South). Chances are neither side will get serious about cash trading until the second half of the week. Live and feeder futures should open moderately higher, supported by further short-covering and follow-through buying.