DTN Early Word Opening Livestock 01/13 06:07

DTN Early Word Opening Livestock 01/13 06:07 Cattle to Open With Uneven Action Look for the cattle complex to open with uneven action as traders position ahead of late-week cash and engage in last minute profit-taking. Lean hog issues should also open on a mixed basis thanks to spillover buying and late long liquidation. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: Mixed Live Equiv $130.49 - .44* Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 84.65 -1.31** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Those monitoring the cattle basis this week have worn out their radar guns. Talk about wild swings. The basis has gone from extreme strength to near normal back to extraordinary strength. Such volatility has made it extremely difficult for buyers and sellers to find common ground to trade cattle. In part, that's why we're kicking out on a Friday morning with virtually no cash business on the books. Late-week basis strength could play in the favor of packers who have been watching margins implode this week. On the other hand, fed numbers remain very tight, perhaps lending feedlot managers extra leverage anyway. Look for moderate trade volume to develop sometime between late morning and midafternoon. Bids are likely to open around $116 in the South and $186 to $187 in the North. Asking prices are likely to be restated around $120 plus in the South and $190 to $192 in the North. Live and feeder futures should open on a mixed basis as traders position ahead of cash news.