DTN Early Word Opening Livestock 09/26 05:58

DTN Early Word Opening Livestock 09/26 05:58 Cattle Futures Should Open Higher Thanks to Follow-Though Buying Live and feeder contracts seem set to open higher, boosted by the board's firming action late Friday. On the other hand, lean hog futures are likely to open lower, pressured by unusually large, early fall country receipts and defensive carcass value. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $127.24 - .31* Hogs: Steady-$1 LR Futures: 50-100 LR Lean Equiv $ 82.08 -1.23** * 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 feedlot country last week seemed generally, light, especially in the South. It will be critical to check mandatory accounting later Monday, but it was our perception that selling interest dried up around midday Friday when futures snapped off extreme session lows. At any rate, cash activity Monday will be limited to the distribution of new showlists. Our guess is that the late-month offering will be somewhat larger than last week. Live and feeder futures should open moderately higher, supported by follow-through buying and short-covering.