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DTN Early Word Opening Livestock 12/10 05:57

12/10/2018 - 06:29:00

DTN Early Word Opening Livestock       12/10 05:57
   Cattle Futures Set to Open on Firm Basis Thanks to Positive Late-Year
Fundamentals

   Live and feeder contracts should initially open higher, supported by
late-week packer spending and stronger wholesale product sales. On the other
hand, lean hog issues are likely to start out with mixed price action with
deferreds probably outperforming spot December.

By John Harrington
DTN Livestock Analyst



Cattle: Steady-$1 HR    Futures: 50-100 HR   Live Equiv: $140.56  +1.19*
Hogs:   Steady          Futures: Mixed       Lean Equiv: $ 78.44  +1.50*

* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   Last week's cash cattle trade once again required market-watchers to burn
the midnight oil. Finally, in the late afternoon, short-bought packers were
forced to find bigger checks ($119 in the South; $187 in the North) in order to
cover mid-December slaughter needs. Movement seemed moderate to fairly active,
especially in the North. Monday's activity will be limited to the distribution
of new showlists. We expect the offering to be steady to somewhat larger than
last week. And don't be surprised if buyers and sellers schedule yet another
price party on Thursday or Friday. Cattle futures are staged to open moderately
higher, generally supported by constructive fundamentals.