DTN Early Word Opening Livestock 12/22 06:20

DTN Early Word Opening Livestock 12/22 06:20 Look for Cattle Futures to Open With Further Gains Live and feeder cattle futures are expected to keep rolling higher in the early going, supported by further short-covering and follow-through buying. Lean hog futures seem staged for a mixed opening as specs and commercials continue to position ahead of the quarterly inventory. By John Harrington DTN Livestock Analyst Cattle: Higher Futures: 100-200 HR Live Equiv $129.22 - $1.70* Hogs: Steady to $1 HR Futures: mixed Lean Equiv $76.04 + .16 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cash cattle potential could start to take on greater definition Tuesday morning, but much may depend upon the stability/volatility of futures. Again, we assume most would like to conclude cash chores by midweek. But much will depend on how market psychology continues to shift. Even given the surge in cattle futures, delivery interest in spot December live remains minimal. CME officials reported only five new delivery intentions on Monday (all steers at Dodge City). Live and feeder futures seem set to open significantly higher again as shorts continue to bail out in recognition of a major bottom.