DTN Early Word Opening Livestock 06/02 06:00

DTN Early Word Opening Livestock 06/02 06:00 Residual Bullishness to Sponsor Higher Opening for Cattle Futures Live and feeder cattle futures are set to open solidly higher, spurred by follow-through buying and growing cash premiums. Lean hog issues should open on a mixed basis thanks to various spreading strategies. By John Harrington DTN Livestock Analyst Cattle: Steady/frm w/Thurs Futures: 100-200 HR Live Equiv $159.19 - .17* Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 96.74 + .44** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Thursday's bullish explosion in the cash cattle was nothing short of shocking. Many thought basic price stability following Memorial Day would constitute a bullish victory of sorts. But a $5 jump in live sales? Almost unbelievable, and yet market reporters documented moderate to active trade volume Thursday at sharply higher money (i.e. $136 to $137 in the South; $215 to $217 in the North). Clean-up action is possible Friday, but we suspect that the lion's share of the week's business is now completed. Steers and heifers remaining on showlists are priced around $138 in the South and $217 to $218 on the North. Live and feeder futures are likely to open solidly higher thanks to residual buying and growing cash premiums.