DTN Early Word Opening Livestock 02/03 06:15

DTN Early Word Opening Livestock 02/03 06:15 Live and Feeder Contracts Set to Open With Follow-Through Strength The cattle complex seem likely to open on a firm basis, supported by follow-through buying and late-week short-covering. Lean hog futures should begin moderately higher thanks to ongoing constructive fundamentals. By John Harrington DTN Livestock Analyst Cattle: Steady w/Wednesday Futures: 50-100 HR Live Equiv $132.91 - .46* Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 88.76 + .59** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Here's the eye-opening question for feedlot managers Friday: Did we trade enough cattle on Wednesday to call it a week? We think there is still inventory on the late-week shelf, but given Thursday's stiff recovery in futures, leftover steers and heifers are probably priced on a firmer basis (e.g., $122 in the South, $192 to $194 in the North). Maybe the bigger question concerns the real depth of packer hunger and how they feel about next week's beef demand. Our guess is that further business is more likely in the North than the South. Live and feeder futures seem likely to open solidly higher, boosted by residual buying interest and late-week short-covering.