DTN Early Word Opening Livestock 07/10 05:40

DTN Early Word Opening Livestock 07/10 05:40 Lean Hog Futures Staged for Firm Opening The cattle complex seems likely to open mixed thanks to a combination of follow-through buying and long liquidation. Lean hog contracts should also generate uneven Look for hog futures to open moderately higher, supported by positive fundamentals and light bull spreading. At the same time, cattle contracts are likely to begin with mixed price action with traders torn between cash premiums and struggling wholesale demand.price action on the opening thanks to bull spreaders taking profits and still constructive fundamentals. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: mixed Live Equiv $145.54 - 0.88* Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $110.47 + $1.09** * 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 early-week cattle market should be typically slow with packer efforts limited to the gathering of new showlists. Our guess is that the fed offering will be steady to somewhat larger than the previous week. Asking prices are likely to start out around $122 in the South and $190-plus in the North. Live and feeder futures should open on a mixed basis thanks to a cautious combination of spillover buying and long liquidation.