DTN Early Word Opening Livestock 11/30 06:16

DTN Early Word Opening Livestock 11/30 06:16 Meat Futures Set for Firm, Post-Holiday Opening The cattle complex is geared to open moderately higher, supported by follow-through buying and ideas of improving late-year beef demand. Lean hog contracts should also open on a firm basis thanks to bull-spreading interest and decent odds for seasonally improving fundamentals. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 10-30 HR Live Equiv $137.43 + 0.56* Hogs: Steady Futures: 10-30 HR Lean Equiv $ 76.87 + 0.66** * 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 market never really got off the ground last week. We waited through sunset on Friday, but the amount of identifiable business was just not enough to wad a shotgun. Several thousand head were marked in Nebraska at $195, and about the same number was tagged in Kansas at $127 (both dressed and live about steady with the previous week). Generally refusing to accept packer bids so far under the December board, many feedlot managers simply decided to carryover marketable inventory into this week. Today will be limited to the distribution of new showlists. We assume the offering will be larger for that reason. On the other hand, cattle buyers should be extremely short bought. Don't be surprised if today's kill falls under 100,000 head. Early asking prices should be around $132-plus in the South and $200-plus in the North. Live and feeder futures are likely to open moderately higher, supported by residual buying and ideas of improving beef demand.