DTN Early Word Opening Livestock 07/20 06:30

DTN Early Word Opening Livestock 07/20 06:30 Livestock Futures Staged for Firm Opening The cattle complex should open with a firm undertone thanks to follow-through buying and technical buying. Similarly, lean hog issues seem likely to begin with at least moderate gains, supported by bull spreading and short covering. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 50-100 HR Live Equiv $139.59 - 0.04* Hogs: Steady-0.50 LR Futures: 50-100 HR Lean Equiv $110.18 + 0.70** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Light to moderate trade volume surfaced in parts of Nebraska yesterday with most dressed steers and heifers marked at $188, about $2 lower than last week's weighted average. A few deals brought as much as $189-190. With packers unnerved by narrowing margins and feedlot managers steeled by higher futures, significant trade volume may be delayed until sometime Friday. Opening bids should start out around $115-117 in the South and $186-188 in the North. We assume that asking prices will be around $122 plus in the South and $190-192 in the North. Live and feeder futures are set to open higher, boosted by follow-through buying and pre cash short covering.