DTN Early Word Opening Livestock 12/07 05:57

DTN Early Word Opening Livestock 12/07 05:57 Meat Futures Staged for Follow-Through Strength at Midweek The cattle complex should open moderately higher, supported by residual buying interest and last week's cash premium. Lean hog futures are also likely to resume trading Wednesday with a firm undertone. By John Harrington DTN Livestock Analyst Cattle: Steady Futures: 50-100 HR Live Equiv $127.41 + .34* Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $ 79.60 + .45** * 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 should start to field a few more bids Wednesday, probably around $112 in the South and $170 to $172 in the North. Asking prices could also begin to surface with greater definition. Having said that, Tuesday's big surge in futures will certainly encourage feedlot managers to price showlists higher and stand tall at least until Thursday or Friday. Our guess is that asking prices will start out around $115 to $116 in the South and $176 to $178 in the North. Live and feeder futures are set to open moderately higher, boosted by short-covering, spillover buying, and cash premiums.