DTN Early Word Opening Livestock 05/02 06:10

DTN Early Word Opening Livestock 05/02 06:10 Meat Futures Set for Mixed Opening at Midweek The cattle complex should open with mixed prices thanks to both short covering and follow-through selling. Lean hog contracts also seem likely to open with uneven action that probably favors nearbys more than deferreds. By John Harrington DTN Analyst Cattle: Steady-$2 HR Futures: mixed Live Equiv: $147.45 + $1.34* Hogs: Steady-$1 HR Futures: mixed Lean Equiv $ 74.13 + ___FCKpd___0.43** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: The midweek cash cattle trade could start to take on greater definition, both in terms of preliminary packers bids and initial asking prices. Positively, red hot beef cut-out should help support processing margins and spot cash bids. Negatively, large board discounts and basis strength could prompt sellers to entertain lower bids. That said, significant trade volume could be delayed until Thursday or Friday. Live and feeder futures seem set to begin with mixed prices thanks to residual selling interest on one hand and short covering on the other.