DTN Early Word Opening Livestock 01/29 06:09

DTN Early Word Opening Livestock 01/29 06:09 Sharply Higher Opening Expected to Rock Cattle Futures The cattle complex should open sharply higher as discounted futures run toward cash premiums. Lean hog issues are likely to open at least moderately higher, supported by short covering, firming carcass value, and spillover support from the cattle trade. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 200-300 HR Live Equiv $139.53 + 0.15* Hogs: Steady Futures: 50-100 HR Lean Equiv $ 87.87 + 0.62** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Look for typically slow activity in feedlot country this morning as packer focus exclusively on the colllection of new showlists. We expect the late month offering to be about steady with last week. While producers will be in no hurry to price cattle, it goes without saying that they will be thinking higher money again (e.g., $130-132 on the South; $206 plus in the North). Live and feeder contracts seem likely to open sharply higher, jacked by higher feedlot sales and technical buying interest.