DTN Early Word Opening Livestock 06/03 05:57

DTN Early Word Opening Livestock 06/03 05:57 Hog Paper Staged for Firm Opening Lean hog futures should open moderately higher, supported by follow-through buying and technical bullishness. On the other hand, the cattle complex is likely to open on a mixed basis as traders cautiously position ahead of late-week cash news. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: Mixed Live Equiv $146.34 + .40 * Hogs: Steady-$1 HR Futures: 50-100 HR Lean Equiv $ 91.60 + .75 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Somehow, someway, cattle buyers and sellers will have to bridge the huge canyon separating preliminary bids from higher asking prices in order to generate at least moderate trade volume before adjourning for the week. Given the combination of their decent margins and short-bought status, our guess is that packers will be forced to throw at least a small party with more money than they spent last week before everything is said and done. Whatever, look for light-to-moderate trade volume to surface Friday sometime between late morning and early afternoon. Opening bids should start out around $123 to $124 in the South and $200 to $203 in the North. Asking prices should be initially restated around $130 to $132 in the South and $210 plus in the North. Live and feeder futures are geared to open on a mixed basis thanks to a slow combination of follow-through buying and long liquidation.