DTN Early Word Opening Livestock 08/18 06:03

DTN Early Word Opening Livestock 08/18 06:03 Cattle Paper Likely to Open Moderately Higher Live and feeder futures should open moderately higher as traders position ahead of cash business and Friday's release of the August 1 Cattle on Feed report. Lean hog contracts are also likely to open on a firm basis, supported by follow-through buying and the premium of the cash index. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $136.02 unch* Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 79.85 + .40 ** * 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 start to improve Thursday and short-bought packers strategize to cover near-term slaughter needs. Opening bids should be around $187 in the North and $118 in the South. The level of trade volume generated may depend upon how deeply feedlot managers dig in with higher asking prices around $190 plus in the North and $120 plus in the South. Needless to say, it would help feedlot resolve if heavily discounted cattle futures could launch a decent rally and stick it. Live and feeder contracts seem likely to open moderately higher, at least initially lifted by pre-cash and pre-report short-covering.