DTN Early Word Opening Livestock 03/07 05:54

DTN Early Word Opening Livestock 03/07 05:54 Hog Paper Should Open Moderately Lower at Midweek Lean hog futures seem set to open lower, checked by follow-through selling and sharply lower carcass value. Look for the cattle complex to begin with mixed prices thanks to a combination of residual selling and short-covering. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: Mixed Live Equiv $148.96 + .26* Hogs: Steady Futures: 50-100 LR Lean Equiv $ 82.95 -1.70** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: For the past several weeks, lower futures and strong basis opportunities have triggered light-to-moderate cash cattle selling. Clearly, a similar scenario could be in play Wednesday. Indeed to stem midweek selling interest we may need to see a sharp rally in cattle futures. Opening bids should be around $125 to $126 on a live basis with asking prices close to $128 or better. Live and feeder seemed staged to open on a mixed basis with follow-through selling on one hand and short-covering on the other.