DTN Early Word Opening Livestock 08/31 05:58

DTN Early Word Opening Livestock 08/31 05:58 Meat Futures Staged for Firm Midweek Opening The cattle complex seems set to open solidly higher, supported by Tuesday's impressive reversal. Lean hog contracts should begin with moderate progress linked to midweek short-covering and light bull spreading. By John Harrington DTN Livestock Analyst Cattle: Steady w/Tues Futures: 50-100 HR Live Equiv $133.69 - .99* Hogs: Steady Futures: 25-50 HR Lean Equiv $ 82.83 + .27** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Trade volume in cattle country on Tuesday varied, ranging from fairly active in the North ($175 dressed/$110 live) to light to moderate in the South ($110 live). Most of such activity seemed to occur before lower futures reversed sharply higher (e.g., soon-to-be-spot October live closed 370 points above session lows). It's seems likely that unsold cattle still on showlists were quickly priced higher. Both buyers and sellers should start out Wednesday in a cautious frame of mind, anxious about if the board is ready to build on Tuesday's turnaround. Accordingly, bids and asking prices could remain poorly defined until Thursday or Friday. Live and feeder futures seem likely to open significantly higher, boosted by residual buying interest and midweek short-covering.