DTN Early Word Opening Livestock 02/02 05:57

DTN Early Word Opening Livestock 02/02 05:57 Meat Futures Set to Open With Firm Undertone The cattle complex is staged to open higher, supported by follow-through buying and perceived technical opportunities. Lean hog issues should also begin with a firm undertone with the help of short-covering and bull-spreading. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $141.07 - .26* Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $ 86.91 - .91** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: If the first half of the cattle week seemed sluggish and lackluster, we may have turned a big corner on Thursday -- at least in terms of futures. Thursday's sudden burst of triple-digit gains promises to reenergize bullish psychology. Needless to say, it will be critical for the board to hold the high ground through Friday's settlements. It may too late in the week to see how this shift plays in the cash market. We could see a few clean-up trades here and there, but it's a good bet that whatever unsold cattle are still out there was to be priced on a firmer basis (e.g., $128 to $130 in the South). Live and feeder futures should open at least moderately higher, supported by residual buying interest and technical considerations.