DTN Early Word Opening Livestock 05/26 05:56

DTN Early Word Opening Livestock 05/26 05:56 Meat Futures Set to Open Higher Look for the cattle complex to open modestly higher thanks to follow-through buying, light short-covering, and cash premiums. Lean hog issues seem likely to open moderately higher, supported by bull-spreading interest and Wednesday's jump in carcass value. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 10-30 HR Live Equiv $147.26 - .37* Hogs: Steady Futures: 25-50 HR Lean Equiv $ 90.22 +1.80** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cattle-buying interest should start to warm up Thursday, possibly taking a few small steps toward asking prices of $130 in the South and $200 to $205 in the North. Light trade volume is evident in several areas with prices lower than last week (e.g., $195 to $197 in the North; $124 to $125 in the South). Yet our guess is that packers will find it necessary Thursday and/or Friday in order to secure slaughter numbers needed to cover short-term production plans. Live and feeder futures are geared to open modestly higher, supported by light follow-through buying and cash premiums.