DTN Early Word Opening Livestock 01/16 05:57

DTN Early Word Opening Livestock 01/16 05:57 Meat Futures Staged to Open Moderately Higher Lean hog contracts should open moderately higher, supported by follow-through buying and firming carcass value. The cattle complex seems likely to begin with modest strength thanks in part to short-covering and the premium status of recent feedlot sales. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 25-50 HR Live Equiv $140.11 - .92* Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 85.00 + .77** * 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 assume that the cash cattle market will remain in slow gear Tuesday but are still puzzled a bit by last week's early jump start. Yet it seems like a safe bet that feedlot managers will at least pause a day or so to see if the board can stabilize, perhaps expanding the bounce seen late last week. Furthermore, such evidence will no doubt play a big role in how new showlists will be priced. Live and feeder futures seem likely to open some higher thanks to follow-through buying, short-covering and cash premiums.