DTN Early Word Opening Livestock 09/08 06:07

DTN Early Word Opening Livestock 09/08 06:07 Meat Futures Set to Open Moderately Higher Live and feeder futures should open moderately higher, supported by follow-through buying and short-covering. Similarly, lean hog issues are set to begin on a firm basis thanks in part to residual buying. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 10-30 HR Live Equiv $129.42 - .58* Hogs: Steady Futures: 10-30 HR Lean Equiv $ 85.08 - .33** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Once again cattle buyers have scored some early-week success in buying a decent test of Northern cattle at lower money (i.e., $170 dressed/$106 live basis Nebraska). We assume that the extraordinarily strong basis helped to motivate some feedlot sellers. Indeed, some may have been motivated to cover spot October in the early going when it dipped below 100. Bid and asking prices may still remain poorly defined Thursday as both sides monitor the board to see if Tuesday's sizable bounce can be established. Live and feeders should open moderately higher, supported by follow-through buying and short-covering.