DTN Early Word Opening Livestock 05/01 07:39

DTN Early Word Opening Livestock 05/01 07:39 New Spot June Live Cattle Likely to Firm on Opening Look for the cattle complex to open moderately higher thanks to short-covering, cash premiums and firming carcass value. Lean hog futures should open mixed as traders slowly bide time, waiting for a more definite shift in fundamentals. By John Harrington DTN Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv: $146.11 + 1.17* Hogs: Steady Futures: Mixed Lean Equiv: $ 73.70 + 0.12** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Little is expected to develop in the cash cattle market Tuesday with bids and asking prices poorly defined. Depending on further development in carcass value and deep board discounts, significant trade volume may not surface until Thursday or Friday. We are assuming bullish feedlot managers will price ready steers and heifers several dollar higher (e.g., $126 basis the South). Live and feeder futures seem likely to open moderately higher Tuesday morning thanks to short-covering, cash premiums and higher cutouts.