DTN Early Word Opening Livestock 12/06 06:04

DTN Early Word Opening Livestock 12/06 06:04 Livestock Futures Set for Moderately Higher Opening Lean hog contracts should open moderately higher, supported by residual buying interest and improving fundamentals. The cattle complex also seems likely to begin with a firm undertone, lifted by short-covering, boxed beef strength, and recent cash feedlot premiums. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 25-50 HR Live Equiv $127.75 + .75* Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 79.15 + .81** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Look for a typically slow session in the cash cattle trade with both bids and asking prices poorly defined. As long as cash and futures are separated by such an enormous spread, packers and feedlot managers alike have something to talk about. Barring a sudden convergence, significant trade volume could easily be delayed until late in the week. Live and feeder futures are likely to open moderate higher, boosted by short-covering and dual premiums of feedlot sales and the cash feeder index.