DTN Early Word Opening Livestock 10/05 06:06

DTN Early Word Opening Livestock 10/05 06:06 Cattle Paper Likely to Open Moderately Higher at Midweek Expect live and feeder futures to open moderately higher Wednesday morning, supported by follow-through buying and further short-covering. On the other hand, lean hog issues are likely to begin with mixed price action thanks to bear-spreading and more post-report profit-taking. By John Harrington DTN Livestock Analyst Cattle: Cash Steady-$2 LR Futures 25-50 HR Live Equiv $126.74 + .05* Hogs: Cash Steady-$1 LR Futures Mixed Lean Equiv $77.38 - $1.20** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Black-and-blue feedlot psychology received a much needed shot in the arm Tuesday as futures rocketed higher with triple-digit gains. Did it represent a temporary breather or something more meaningful that would-be bulls can build on? Obviously, only time will tell. Until cash prospects come into better focus, bids and asking prices may remain very guarded. Significant trade volume will probably be delayed until Thursday or Friday. Live and feeder contracts should open moderately higher, supported by follow-through buying and pre-cash trade short-covering.