DTN Early Word Opening Livestock 01/27 06:04

DTN Early Word Opening Livestock 01/27 06:04 Meat Futures Seem Likely to Open Moderately Higher Live and feeder futures are set to open some higher, supported by short-covering, firming cutouts, and cash premiums. Lean hog contracts should also open with some strength, lifted by short-covering and profit-taking prior to the weekend break. By John Harrington DTN Livestock Analyst Cattle: Steady w/Thurs Futures: 25-50 HR Live Equiv $132.66 + .86* Hogs: Steady Futures: 25-50 HR Lean Equiv $ 88.08 + .41** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Moderate cash cattle trading surfaced on Thursday as sharply lower futures and unique basis strength prompted feedlot managers to lower asking prices. Live deals in the South were tagged at $122, fully steady with last week. On the other hand, most dressed business in the North was done at $194, which is $1 lower than last week's weighted average basis Nebraska. Another round of light to moderate movement is possible Friday, especially in the North. The balance of show lists are probably priced around $122 to $123 in the South and $195 plus in the North. The Jan. 1 Cattle on Feed report will be released Friday afternoon at 2 p.m. CST. Average trade guesses look like this: on feed, off 1%; placed in December, up 8% to 9%; marketed in December, up 6% to 7%. Look for cattle futures to open moderately higher, supported by late-week short-covering and positioning ahead of the feedlot inventory.