DTN Early Word Opening Livestock 07/12 05:55

DTN Early Word Opening Livestock 07/12 05:55 Cattle Paper Set to Open Moderately Higher The cattle complex should open moderately higher, supported by short-covering and follow-through buying. On the other hand, lean hog issues are likely to open on a mixed basis with nearby contracts firmer than deferred counterparts. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 25-50 HR Live Equiv $143.69 -1.39* Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $110.77 + .33** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cattle buyers could start to cast a few lines at midweek, probably nothing attractive enough to prompt feedlot selling interest, but perhaps sufficiently serious to get the conversation started. Both sides will be monitoring the FCE auction. Internet trade volume hasn't been large enough to wad a shotgun this summer, but at times it can still get bigger things rolling. We believe asking prices will start out around $120 to $122 in the South and $190 to $192 in the North. Live and feeder futures seem likely to open moderately higher, supported by short-covering and residual buying interest.