DTN Early Word Opening Livestock 01/05 05:55

DTN Early Word Opening Livestock 01/05 05:55 Lean Hog Contracts Staged for Moderate Late-Week Strength Hog futures should open moderately higher, supported by follow-through buying and impressive signs of cash appreciation. On the other hand, the cattle complex is likely to open on a mixed basis as traders position ahead of cash news development. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: Mixed Live Equiv $140.18 + .42* Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 83.92 - .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: Cattle market watchers are welcoming the first 11th hour of 2018. With processing margins narrowing and ample fed numbers anticipated in the months ahead, packers are really trying to dig in their heels. On the other hand, feedlot managers have been understandably impressed by the bullish leverage they commanded over the last several weeks. Asking prices should be restated around $126 to $127 in the South and $200 in the North. Both sides will be looking at the board for help. Accordingly, significant trade volume may not surface until after the CME closes. Live and feeder futures should open on a mixed basis as speculators and commercials position ahead of cash business.