DTN Early Word Opening Livestock 05/04 06:10

DTN Early Word Opening Livestock 05/04 06:10 Cattle Complex Seems Staged to Open Lower at Midweek Live and feeder cattle futures are likely to open lower, pressured by struggling beef demand and long liquidation. Lean hog contracts are set to open on a mixed basis tied to a combination of spillover buying and midweek profit-taking. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR: Futures: 25-50 LR Live Equiv $138.63 - 2.24 * Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 87.57 - 1.16 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Preliminary cattle buying interest could start to surface here and there Wednesday. Yet early bids are likely to be quite defensive given the aggressive way the boxed beef trade is retreating. Stumbling futures have been leading feedlot cash lower for the last several weeks, spurred by extraordinarily strong basis levels. Therefore, the ability of the board to stabilize through the balance of the week is likely to be crucial in determining the cash market. Live and feeder cattle futures are expected to open moderately lower, pressured by long liquidation, souring cash expectations, and eroding carcass value.