DTN Early Word Opening Livestock 05/03 06:10

DTN Early Word Opening Livestock 05/03 06:10 Hog Paper Likely to Open Moderately Higher Lean hog futures should open moderately higher, supported by follow-through buying and steadily appreciating carcass value. The cattle complex also seems ready to open on a firm basis thanks to residual buying and recent feedlot sales. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 10-30 HR Live Equiv $140.87 -$1.19 * Hogs: Steady-$1 HR Futures: 10-30 HR Lean Equiv $ 88.73 +$1.19 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Nearly all cattle market watchers and participants are prepared for a typically slow Tuesday. Neither bids nor asking prices are likely to be well designed. Our guess is that asking prices will start out around $126 to $128 in the South and $200 plus in the North. The great discount of spot June makes it tough (both in terms of basis strength and general psychology) for feedlot managers to dig in their heels with higher asking prices. Significant trade volume could easily be delayed until Thursday or Friday. Look for live and feeder futures to open moderately higher with the help of spillover short-covering and the premium nature of recent feedlot sales.