DTN Early Word Opening Livestock 12/27 06:51

DTN Early Word Opening Livestock 12/27 06:51 Cattle Traders Look to Expand Holiday Gains Strong price support moving into live and feeder cattle futures Thursday is expected to stimulate additional end-of-week interest on Friday. The triple-digit gains in feeder cattle futures appear to be creating additional holiday momentum as traders take advantage of the limited volume. By Rick Kment DTN Analyst Cattle: Steady Futures: Higher Live Equiv $140.11 -0.38* Hogs: Steady Futures: Mixed Lean Equiv $ 80.66 -1.05** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: It is not a huge surprise that it has come down to Friday cash cattle trade once again. Overall interest in the market before the holiday was extremely light, but packers still appear to need some additional cattle in order to fuel the abbreviated packing schedules next week. This should keep both sides on their toes through the entire day. Although the lack of cash market direction so far this week would suggest it could become a late-day affair once again this week, it is important to remember this is still considered a holiday weekend with many gatherings still taking place between the Christmas and New Year's holiday. Given the renewed support in futures trade and need for cattle, cash markets are likely to be no worse than steady, with the potential for light to moderate holiday support still keeping feeders holding onto higher asking prices. Cattle remain priced near $123 live basis in the South and $195 in the North, although the resolve will quickly fade through the end of the day if packer bids do not improve significantly. Futures trade is expected to renew the positive tone which developed Thursday as limited volume has allowed for underlying bullish market support to move back into all cattle markets. Although Thursday's gains have been unable to break through resistance levels, the reversal from the swift shift lower in feeder cattle trade appears to be sparking bullish technical support through the end of the week. Friday slaughter runs are expected at 119,000 head.