DTN Early Word Opening Livestock 09/12 06:01

DTN Early Word Opening Livestock 09/12 06:01 Meat Futures Likely to Open New Week With Mixed Price Action The cattle complex seems staged to open moderately higher, boosted by residual buying interest and short-covering. On the other hand, hog paper should begin some lower, checked by follow-through selling and long liquidation. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 10-30 HR Live Equiv $128.15 - .45* Hogs: Steady Futures: 10-30 LR Lean Equiv $ 86.93 - .02** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Can cattle futures extend the late-week rally, taking out significant overhead resistance? Will feedlot managers find a way to regain country leverage and stop the profuse bleeding of the last several weeks? As far as we can tell, these are simply two versions of the same question. It may take some time for a meaningful answer in any form to shake out. To be sure, activity Monday will be limited to the distribution of new showlists. Our guess is that a ready number should be about steady with last week. Understandably, beef producers will be reluctant to price ready cattle until they can get a decent sense of what the board wants to do. Live and feeder futures should open moderately higher, supported by follow-through buying and early-week short-covering.