DTN Early Word Opening Livestock 08/24 06:02

DTN Early Word Opening Livestock 08/24 06:02 Cattle Futures Set to Bounce Higher in Early-Week Short Covering Barring additional pressure from outside markets, cattle futures should open moderately higher thanks to short covering and the friendly implications of the August 1 on feed report. Lean hog futures should also bounce some higher as traders take early-week profits. By John Harrington DTN Analyst Cattle: Steady Futures: 25-50 HR Live Equiv $164.20 - 0.70* Hogs: Steady to $1 LR Futures: 10-30 HR Lean Equiv $ 92.57 + 0.24** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: The big question as the new week begins is whether outside market will allow the cattle market to return to basic realities of supply and demand. The answer may hang in the balance for a day or so. Whatever, activity today will be typically limited to the distribution of new showlists. Initial asking prices will probably be around $150 in the South and $236-238 in the North. Look for live and feeder futures to open moderately higher, tentatively supported by short covering and disclosure of smaller than expected July placement activity.