DTN Early Word Opening Livestock 09/07 05:58

DTN Early Word Opening Livestock 09/07 05:58 Cattle Paper to Open Moderately Lower Live and feeder contracts should open moderately lower, pressured by follow-through selling and cash market worries. Lean hog issues seem likely to start out moderately higher thanks to short-covering and sharply higher carcass value. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 25-50 LR Live Equiv $130.00 - .45* Hogs: Steady Futures: 25-50 HR Lean Equiv $ 85.41 +2.52** * 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 psychology remains in crisis thanks to an imploding board that just can't find the brakes. Our guess is that bids and asking prices will remain poorly defined for at least one more day. With futures moving this fast, neither buyers nor sellers know where to initially draw lines in the sand. Needless to say, deepening board discounts and extraordinarily strong basis levels will make it tough for feedlot managers to defend the high ground. Live and feeder futures are likely to open moderately lower, checked by residual selling interest and technical bearishness.