Live and feeder contracts should open on a mixed basis as traders slowly sort through ambivalent Cattle on Feed news. Lean hog futures are also expected to start out with uneven price action.

Cattle: Cash Stdy-1 LR Futures Mixed Live Equiv $130.06 + .33*

Hogs: Cash Steady Futures Mixed Lean Equiv $85.25 + .63**

*based on formula estimating live cattle equivalent of gross packer revenue; **based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS

Hoping that tight fed supplies can continue to trump poor processing margins, feedlot margins will once again start out the week by pricing ready steers and heifers higher, probably around $124 to $125 in the South and $200 to $202 in the North. Showlists are expected to be some larger, but fed supplies could remain quite manageable if chain speed increases. While processing margins are unattractive, standing orders may call for more beef production as retailers and food managers prepare for seasonal demand. Cattle futures seem set to open on a mixed basis as traders position ahead cash prospects.