DTN Early Word Opening Livestock 06/26 05:59

DTN Early Word Opening Livestock 06/26 05:59 Look For Cattle Futures to Open Under Pressure Linked to Negative on Feed News Live and feeder cattle contracts should open significantly lower, initially checked by the larger than expected May placement and long liquidation. Lean hog futures seem likely to open higher, supported by falling carcass value and bull-spreading interest. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 100-200 LR Live Equiv $157.10 -1.26* Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $106.68 +1.67** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: As feedlot managers move into the final week of June, and the second quarter, they are hoping that the cash market can somehow find a way to pull out the bearish tailspin of the last two weeks. A crucial first step would no doubt involve the stabilization of live and feeder futures. For that to happen, we may first have to quickly digest the June 1 Cattle on Feed report, which some saw as somewhat disappointing in terms of larger than expected May placement. Cash activity will be limited to the distribution of new showlists. The late-month offering is likely to be somewhat larger than last week. Asking prices may not be well defined until midweek or so. Live and feeder futures should open lower, pressured by on feed implications and long liquidations.