DTN Early Word Opening Livestock 10/30 05:55

DTN Early Word Opening Livestock 10/30 05:55 Cattle Futures Set to Surge Higher on Opening Look for the cattle complex to open sharply higher as the board reacts to the cash market's bullish explosion late Friday. Lean hog contracts should open on a firm basis thanks to spillover buying from cattle futures and the premium of the cash index. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 200-300 HR Live Equiv $135.31 + .49* Hogs: Steady-$1 LR Futures: 50-100 HR Lean Equiv $ 82.67 + .12** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Even the most dedicated bulls in the room were shocked late Friday by the way feedlot sales soared higher. Steers and heifers sold from $117 to $119 on a live basis in most areas, $6 to $8 higher. At the same time, dressed sales were marked at $182 to $185, $7 to $10 higher. The late hour made it difficult to assess total volume, but we assume Livestock Mandatory Reporting will document moderate to fairly good movement later Monday. Activity Monday will be typically limited to the distribution of new showlists. Our guess is that the new offering will be about steady with last week. Live and feeder futures should open higher as the nearby contract aggressively chases the new cash reality.