DTN Early Word Opening Livestock 01/31 05:54

DTN Early Word Opening Livestock 01/31 05:54 Cattle Futures Staged to Open Moderately Higher Live and feeder futures should open moderately higher, supported by short-covering and cash premiums. Hog contracts seem set to begin on a mixed basis thanks to residual selling and short-covering. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $141.20 + .27* Hogs: Steady Futures: Mixed Lean Equiv $ 87.65 - .25** * 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 cattle trading surfaced Tuesday as some feedlots moved to take advantage of attractive basis opportunity. If the basis weakens Wednesday (e.g., with futures rallying back towards last week's cash market), further cash business will slow with feedlot managers digging in with higher asking prices around $130 in the South and $205 in the North. Such a stiffening of resolve could delay significant trade volume until Thursday or Friday. The semi-annual herd inventory will be released Wednesday at 2 p.m. CST. Generally speaking, analysts are expecting the USDA to confirm a total close to 95.4 million head, 1.5% to 2% larger than last year. Live and feeder futures are expected to open moderately higher, supported by short-covering and cash premium realities.