DTN Early Word Opening Livestock 05/12 05:59

DTN Early Word Opening Livestock 05/12 05:59 Meat Futures Staged for Firm Opening The cattle complex seems geared to open moderately higher, supported by surging carcass value and preliminary signs of great packer spending in feedlot country. Lean hog futures should also begin with firm price action thanks to follow-through buying and seasonal expectations of improving fundamentals. By John Harrington DTN Livestock Analyst Cattle: $1-3 HR Futures: 25-50 HR Live Equiv $143.09 +2.04 * Hogs: Steady-$1 HR Futures: 25-50 HR Lean Equiv $ 88.06 + .32 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Look for cattle buyers to start making the rounds Thursday with bids around $124 to $126 in the South and $200 to $205 in the North. Although we expect to see hard evidence of firming buying interest, significant trade volume could easily be delayed until Friday. Asking prices are around $132 to $134 in the South and $205 to $207 plus in the North. While this week's slaughter may slip toward the 575,000 to 580,000 head area, that would still be above last year's 568,000 head. Live and feeder contracts are expected to open moderately higher, supported by impressive beef cutouts and ideas of higher country sales waiting to surface sometime between now and the weekend.