DTN Early Word Opening Livestock 01/18 06:27

DTN Early Word Opening Livestock 01/18 06:27 Look for Follow-Through to Support Firm Cattle Opening Live and feeder futures should open higher, supported by follow-through buying and cash optimism. Lean hog contracts are likely to open on a mixed basis thanks to residual selling on one hand and short covering on the other. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $138.46 - 0.22* Hogs: Steady-$1 HR Futures: mixed Lean Equiv $ 86.14 + 24** * 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 buying interest should start to improve this morning with starter bids around $118-119 in the South and $190 in the North. Yet advancing futures have clearly stiffen the backbone of feedlot managers. Barring a major break in the board, we expect them to dig in their heels with higher asking prices (i.e., $122-123 in the South; $195-197 in the North). If beef producers stand tall in this regard, significant trade volume could easily be delayed until Friday. Live and feeder futures should open on a firm basis, supported by follow-through buying and stronger cash expectatons.