DTN Early Word Opening Livestock 10/17 06:08

DTN Early Word Opening Livestock 10/17 06:08 Meat Futures Likely to Open Modestly Higher Look for live and feeder futures to open moderately higher Monday morning, supported by follow-through buying and early-week short-covering. Lean hog contracts also seem set to begin with firm price action thanks to light bull spreading and the premium status of the cash index. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 10-30 HR Live Equiv $123.52 - .08* Hogs: Steady-$1 LR Futures: 10-30 HR Lean Equiv $ 78.54 + .94** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Most would agree that the best way to stabilize the cash cattle market is to first stabilize live and feeder futures. Unfortunately, it's easier to identify a problem than to solve it. The first step in evaluating fundamental prospects is of course, the distribution of new showlists. Our guess is that the mid-month offering will be about steady with last week. Asking prices will remain guarded until feedlot managers get a decent handle on the board's next move. Cattle futures should open moderately higher, supported by residual buying and short-covering.