DTN Early Word Opening Livestock 06/13 05:59

DTN Early Word Opening Livestock 06/13 05:59 Cattle Paper Expected to Open Lower on Follow-Through Selling Live and feeder futures should open moderately lower, checked by residual selling interest and long liquidation. On the other hand, lean hog contracts should open on a mixed basis with nearby losing ground to deferred. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 50-100 LR Live Equiv $163.12 + .87* Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 98.61 + .69** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: We look for a typically quiet Tuesday in the cattle market with both bids and asking prices remaining poorly defined. Given the Monday CME crash, board discounts seems to be asserting themselves. Yet it remains to be seen if feedlot psychology will sour enough for feedlot managers to accept sharply lower bids. For the most part, feedlot managers have enjoyed remarkable leverage throughout the second quarter. Is that about to change? Such a question may not be seriously addressed until Wednesday or Thursday. Cattle complex futures will probably open moderately lower, pressured by spillover selling and cash market caution.