DTN Early Word Opening Livestock 09/27 06:02

DTN Early Word Opening Livestock 09/27 06:02 Cattle Paper Likely to Open Moderately Higher at Midweek Look for live and feeder futures to open moderately higher Wednesday, supported by pre-cash short-covering and signs of stronger beef demand. Lean hog contracts seem set to open with mixed prices as traders cautiously jockey ahead of the September Hogs & Pigs report to be released on Thursday. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $133.47 + 1.59* Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 77.76 - 1.01** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cattle-buying inquiry could start to show more life Wednesday, at least in terms of more starter bids of the time. At the same time, preliminary asking prices should become more evident. Our guess is that the South will initially price showlists around $110 to $112 live. Northern feedlots are likely to begin asking somewhere in the $172 to $174 plus neighborhood. Both buyers and sellers will be monitoring the board as well as the FCE internet auction for clues regarding cash prospects through the balance of the week. Chances are the development of significant cash volume will be delayed until sometime Thursday or Friday. Live and feeder futures seem geared to open moderately higher Wednesday, supported by midweek short-covering and the early-week appreciation of beef carcass value.