DTN Early Word Opening Livestock 09/23 06:01

DTN Early Word Opening Livestock 09/23 06:01 Cattle Futures Seem Set for Mixed Opening Look for the cattle complex to open on a mixed basis tied to a combination of residual selling and pre cash/Cattle on Feed report short-covering. Lean hog futures should open moderately lower, pressured by bearish late-week fundamentals. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: Mixed Live Equiv $127.55 + .01* Hogs: Steady-$1 LR Futures: 25-50 LR Lean Equiv $ 83.31 -1.45** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: The cash cattle trade is quickly moving toward "now or never." Packers are short bought with decent margins. Yet Thursday's sharp break in futures seemed to take a chunk out of feedlot leverage in terms of a much stronger basis. With spot October live closing Thursday nearly $3 under last week's cash, it may be much more difficult for feedlot managers to hold for higher asking prices. A sudden recovery in the board could help, but that could be a tough call. At any rate, look for significant trade volume to surface sometime between late morning and late afternoon. The Sept. 1 Cattle on Feed report is set to be released Friday afternoon at 2:00 p.m. (CT). Average guesses expect the following: on feed, up 1%; placed in August, up 13%; marketed in August, up 17%. Live and feeder futures should open on a mixed basis as traders position ahead of cash and on feed news.