DTN Early Word Opening Livestock 02/27 06:19

DTN Early Word Opening Livestock 02/27 06:19 Meat Futures Geared to Open New Week with Moderate Gains Look for the cattle complex to open higher, supported by encouraging fundamentals and the premium structure of feedlot cash. Lean hog contracts should also begin with a firm undertone tied to short covering the adjustments of extreme board discounts. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $136.46 + $1.72* Hogs: Steady-$1 LR Futures: 25-50 HR Lean Equiv $87.30 + $1.66** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Feedlot psychology is riding high this morning, juiced by the incredible surge in packers spending last week. Our preliminary guess is that new showlists will be priced at least $2-4 higher on a live basis. Yet don't look for much specific talk along those lines as traders typically focus on the distribution of the late month offering. Ready numbers are likely to be steady to somewhat smaller compared with last week. Live and feeder futures are staged to open moderately higher thanks to early-week short covering and constructive fundamentals.