DTN Early Word Opening Livestock 05/11 06:02

DTN Early Word Opening Livestock 05/11 06:02 Livestock Futures Set for Moderate Opening Strength The cattle complex is likely to open moderately higher, supported by impressive strength in beef cutouts and the premium status of recent feedlot sales. Lean hog contracts should also open with a firm undertone thanks to follow-through buying and seasonally improving fundamentals. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 25-50 HR Live Equiv $141.05 +2.33* Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 87.74 + .15** * 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 cash cattle market could see the first bids of the week Wednesday, but you can bet that they won't be very tempting to bullish-minded feedlot managers, Between last year's cash success, recent gains in futures, and sharply higher beef cutouts over the last few days, there's no question that producers will be digging in with bullish heels, taking higher expectations well into Friday if necessary. Some showlists have been priced around $132 to $134 in the South and $205 plus in the North. Live and feeder issues should open moderately higher, boosted by follow-through buying, sharply higher cutouts, and firm cash expectations.