DTN Early Word Opening Livestock 12/31 06:03

DTN Early Word Opening Livestock 12/31 06:03 Cattle Paper Likely to Open Firm Thanks to Late-Week Cash Spending Live and feeder futures should open Monday higher, supported stronger feedlot sales late Friday and follow-through buying. On the other hand, look for lean hog contracts to begin more on a mixed basis with early-week traders torn between the chance of seasonally improving fundamentals and pre-existing board premiums. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv: $142.21 - .26* Hogs: Steady-$1 LR Futures: Mixed Lean Equiv: $ 75.19 + .05** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Market watchers who were willing to stay late enough on Friday eventually saw the development of moderate trade volume in most areas of cattle-feeding country. Furthermore, even maximum foot-dragging by packers could not excuse them from the need of spending more money for ready inventory. Most dressed deals in the North were marked at $195, as much as $5 higher than the previous week's weighted average basis Nebraska. Most live sales in the South were reported at $123, as much as $4 higher than the prior Friday's market test in Kansas and Texas.