DTN Early Word Opening Livestock 02/23 06:01

DTN Early Word Opening Livestock 02/23 06:01 Further Strength Likely in Cattle Futures Opening Live and feeder futures seem staged for higher ground Thursday, supported by follow-through buying and aggressive packer spending in feedlot country. On the other hand, lean hog issues should open moderately lower, checked by residual selling and defensive carcass value. By John Harrington DTN Livestock Analyst Cattle: Steady/firm w/Wed Futures: 50-100 HR Live Equiv $133.49 + 1.28* Hogs: Steady-$1 LR Futures: 25-50 LR Lean Equiv $ 85.62 - 4.30** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: All of a sudden, cash bulls jumped out of the cattle woodwork at midweek. Almost before you could say "tight supplies" live sales were marked $5 higher (i.e., $125 live part of the North and South). Dressed deals surged as well with most Northern deals traded at $196, $6 higher than last week's weighted average basis Nebraska. Trade volume seemed quite large in most areas, and it's possible that business could actually be done for the week. Cattle still left on showlists will probably be priced around $127 to $128 in the South and $200 in the North. Live and feeder futures should open solidly higher, boosted by follow-through buying and the surprising surge in packer spending.