DTN Early Word Opening Livestock 03/16 06:13

DTN Early Word Opening Livestock 03/16 06:13 Cattle Contracts Likely to Open Sharply Higher on Cash News Live and feeder futures should open with impressive gains, supported by growing cash premiums. Lean hog contracts are likely to begin with mixed prices thanks to a combination of residual selling and short covering. By John Harrington DTN Livestock Analyst Cattle: Steady/firm w/Wed Futures: 100-200 HR Live Equiv $149.20 + 0.24* Hogs: Steady Futures: mixed Lean Equiv $87.61 - 0.58** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Apparently Wednesday has become the magic hour to sell cattle sharply higher. For the third consecutive week, feedlot managers scored big time in terms of bullish marketing yesterday. It started out when the FCE sold internet cattle as m much as $4-5 higher than last week. With that spark, packer buyer interest seem to grow through the day. By the time the sun set, live sales were $3 higher in the South (mostly $128) and dressed deals were $8-9 higher in the North (mostly $210). At this point, we think trade volume was no better than moderate, but it will be important to check out Mandatory summaries later this morning. Unsold cattle remain ing on show lists are priced around $130 in the South and $212 plus in the North. Live and feeder futures seem likely to open significantly higher, supported by follow-through buying and tall cash premiums.