DTN Early Word Opening Livestock 03/11 06:33

DTN Early Word Opening Livestock 03/11 06:33 Traders Expected to be Cautiously Friendly A strong close in both cattle and hog futures should generate further buying activity from traders as resistance levels were breeched in many contracts. This may spark further short-covering. By Robin Schmahl DTN Dairy Analyst Cattle: Steady Futures: Higher Live Equiv: $149.67 +0.16* Hogs: $1 Higher Futures: Higher Lean Equiv: $ 69.53 +0.87** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cash cattle traded generally steady at $128 live and $205 dressed last week, which will carry over into this week. Packers see no need to bid higher to begin the week even though futures put in a strong close at the end of the week. The Cattle on Feed report was considered neutral with on-feed and marketed numbers right in line with the average estimates. USDA reported placements at 95% compared to the average estimate of 92.6%. However, this was within the range of estimates. The fact that both feeders and live cattle posted a strong close should keep bulls in control and support under the market. Offers in the country may start out same as last week at $130 live and $207 dressed with packers beginning where business took place last week. Commitment of traders report shows funds are long 180,903 futures contracts and short 44,907 futures contracts. Commercial traders are long 130,603 futures and short 236,347 futures.