DTN Early Word Opening Livestock 05/01 06:03

DTN Early Word Opening Livestock 05/01 06:03 Livestock Futures Staged for Initial Strength Look for the cattle complex at the CME to open solidly higher, supported by follow-through buying and cash premiums. Lean hog futures should also begin a with firm undertone thanks to technical buying and ideas of seasonal strength. By John Harrington DTN Livestock Analyst Cattle: Steady to $2 HR Futures: 50-100 HR Live Equiv NA* Hogs: Steady to $1 HR Futures: 50-100 HR Lean Equiv NA** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Historically, it's not unusual for the cattle market to celebrate "May Day" in a bullish state of mind. Yet fed cattle prices have already rallied so far in the first third of 2017. How much more fire does this market have in its belly? However unsettled that question may seem Monday, you can bet that feedlot managers will be eager to bet on positive momentum and price showlists at least $2 to $3 higher as the new month begins (e.g., $140 to $142 higher in the South, $220 to $225 in the North). That said, activity Monday should be limited to the distribution of new showlists. Look for the early-month offering to be about steady to somewhat larger than last week. Live and feeder futures should open higher, supported by residual buying and cash premiums.