DTN Early Word Opening Livestock 01/20 06:12

DTN Early Word Opening Livestock 01/20 06:12 Cattle Paper Set to be Well Supported in Opening Rounds Live and feeder futures should open moderately higher, supported by follow-through buying and impressive feedlot sales. Lean hog futures seem also likely to begin with a firm undertone thanks in part to the premium status of the cash index. By John Harrington DTN Livestock Analyst Cattle: Steady/firm w/Thurs Futures: 25-50 HR Live Equiv $131.67 - .76 * Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 84.16 + .06 ** * 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 trade suddenly caught fire Thursday as short-bought packers jumped toward higher asking prices in order to secure slaughter needs. Such aggressiveness meant live sales in the South as high as $122 to $123, $3 to $4 higher than last Friday. At the same time, dressed deals in the North were marked at $194 to $195, generally $5 higher than last week's weighted averages. Although we could see some clean-up action here and there, most business appears to be done for week thanks to Thursday's moderate to fairly active trade volume generated in most areas. Live and feeder futures should open moderately higher, encouraged by spillover buying and impressive evidence of packer spending.