DTN Early Word Opening Livestock 12/31 06:14

DTN Early Word Opening Livestock 12/31 06:14 Cattle Complex Staged for Late-Year Strength Live and feeder futures should open solidly higher, powered by greater packer spending in their country and follow-through board buying. On the other hand, lean hog contracts are likely to open on a mixed basis in light trade volume. By John Harrington DTN Livestock Analyst Cattle: Stdy/firm w/Wed Futures: 100-200 HR Live Equiv $140.16 + $1.84* Hogs: Steady-$1 HR Futures: mixed Lean Equiv $ 71.83 - $2.98** * 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 exploded higher on Wednesday with most live sales $10-12 higher (i.e., $134-136). Dressed deals in the North were marked at $212 for the most part, $12 higher than the previous week's weighted average basis Nebraska. Given decent trade volume in most areas, we suspect that most business is done for the week. Any steers and heifer still remaining on show lists are priced around $136-plus in the South and $213-215 in the North. CME officials announced six new delivery intentions on Wednesday (all steers at Worthing). Live and feeder futures should open solidly higher, lifted by aggressive packer spending in the country and follow-through buying.