DTN Early Word Opening Livestock 05/16 06:03

DTN Early Word Opening Livestock 05/16 06:03 Cattle Futures Set to Open Week Solidly Higher Live and feeder futures seem likely to open higher Monday morning, supported by substantial cash premiums and signs of improving seasonal beef demand. On the other hand, lean hog contracts are likely to begin the week with mixed price action thanks to a combination of spillover selling and short-covering. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv $145.66 +1.74* Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 87.49 - .63** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: For those still going back to the spring market textbook, some no doubt will expect cattle and beef buyers to start coasting with Memorial Day just several weeks away. Maybe. But if you've been tracking the wild price swings since early April, one can't help wondering whether traditional price patterns mean much in 2016. Perhaps bulls and bears alike should best keep their seat belts fastened. That said, activity in feedlot country will be typically limited to the distribution of new showlists. We expect the new offering to be about steady with last week. We speculate that initial asking prices will be around $136 to $137 in the South and $215 to $220 in the North. Given the way cash deals have rocketed over the last two weeks, feedlot managers have a right to be fairly chesty in terms of fed values. Live and feeder futures should open with decent gains, supported by large cash premiums and recent appreciation in carcass value.