DTN Early Word Opening Livestock 08/05 06:07

DTN Early Word Opening Livestock 08/05 06:07 Look For Cattle Futures to Pop Higher Thanks to Stronger Cash News Cattle contracts should quickly recover Friday, reversing Thursday's reversal as the trade recognizes the significant packer spending late Thursday. Lean hog futures seem staged to open on a mixed basis thanks to residual selling on one hand and late week short-covering on the other. By John Harrington DTN Livestock Analyst Cattle: Firm w/Thurs advance Futures: 100-200 HR Live Equiv $134.77 - .16* Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 83.63 + .88** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Higher feedlot sales surfaced in most areas on Thursday, $118 to $119 in the South (i.e., $2 to $3 higher) and $187 to $190 in the North (i.e., $1 to $3 higher). Trade volume seemed no better than light to moderate, but we will be anxious to see the official mandatory date later Friday when summaries are released. At this point, we believe cattle buyers still need to do some last minute shopping before calling it a week. Asking prices on the balance of showlists are around $120 to $122 in the South and $192 plus in the North. Live and feeder futures should open significantly higher, supported by short-covering and higher feedlot sales.