DTN Early Word Opening Livestock 07/09 05:55

DTN Early Word Opening Livestock 07/09 05:55 Cattle Paper Likely to Open Higher Given Towering Cash Premium Cattle futures should open with a firm undertone, especially in nearby live contracts. Lean hog issues seem set to begin with mixed price action with front-end contracts better supported than deferreds. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-200 HR Live Equiv: $138.18 - .15 * Hogs: Steady-$1 LR Futures: Mixed Lean Equiv: $ 90.80 - .84** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Action in feedlot country will be typically slow Monday as buyers and sellers focus on the distribution of new showlists. We expect the offering of ready steers and heifers to be about steady with last week. Buoyed by greater packer spending right before the weekend (i.e., $112 to $113.50 in the South; $175 to $180 in the North), there can be little doubt that feedlot managers will be pricing fed cattle for several dollars more. The weather map across the heart of feeding country suggests that we're in for another hot week, and the intense midsummer sun can always be a market wildcard. Given Friday's late reversal with the board collapsing in the face of impressive cash strength, the opening call is a bit tough. Yet such extraordinary basis strength suggests the cattle futures will at least start out significantly higher with nearby live futures leading the early charge.