DTN Early Word Opening Livestock 12/21 06:02

DTN Early Word Opening Livestock 12/21 06:02 Cattle Futures Set to Open Solidly Higher Look for live and feeder contracts to open significantly higher, supported by follow-through buying from Friday's price surge and record-low feedlot confirmed in November. On the other hand, lean hog issues seem likely to open on a mixed basis thanks to spillover cattle support and the softening pork carcass value. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 100-200 HR Live Equiv $130.92 - .91* Hogs: $1 LR Futures: mixed Lean Equiv $75.88 -$1.74** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Thanks to Friday's CME price explosion, live and feeder cattle futures will start the week with expanded limits (i.e., 450 and 675 points, respectively). Whether the cattle board will need the extra running room may depend upon what technical significance specs and commercials want to place on the late-week surge. If we see meaningful follow-through Monday, it could bode well for a major turn in market psychology. Beyond that, feedlot country is expected to be very quiet with packers limiting efforts to the collection of new showlists. The pre-Christmas offering should be steady to somewhat smaller than last week. Our guess is that initial asking prices will start around $122 plus in the South and $190 plus in the North. Although packers could have a relatively small shopping week, we assume that both sides would love to have procurement and marketing chores wrapped up by Wednesday night. Cattle paper should at least start out higher Monday morning, lifted by a combination of follow-through buying and the friendly implications of the December 1 Cattle on Feed report.