DTN Early Word Opening Livestock 12/27 06:52

DTN Early Word Opening Livestock 12/27 06:52 Livestock Futures to Return From Christmas Break With Mixed Price Action The cattle complex seems likely to open Tuesday moderately higher, supported by cash premiums and decent late-year beef demand. Look for lean hog issues to begin somewhat on the defensive thanks to residual selling interest tied to the bearish Dec. 1 Hogs & Pigs report. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $134.08 + .57* Hogs: Steady-$1 LR Futures: 50-100 LR Lean Equiv $ 86.25 + .52 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cattle feeders are expected to return from the holiday still in jolly good spirits. Our guess is that any negative suggestions contained in Friday's Cattle on Feed report (e.g. somewhat larger-than-expected November placement activity) will be quickly forgotten. Many were surprised by the generosity displayed by packers last Thursday and will be eager to pay them back by pricing showlists significantly higher (e.g., $118 to $120 in the South, $185 to $188 in the North). Yet early-week bids and asking prices will be poorly defined Tuesday with the delayed start focused on the distribution of new showlists. We think the late-year offering should be about steady with last week. Look for live and feeder issues to open moderately higher, supported by the premium status of recent feedlot sales and appreciating carcass value.