DTN Early Word Opening Livestock 05/10 06:02

DTN Early Word Opening Livestock 05/10 06:02 Lean Hog Futures Should Open Solidly Higher Look for lean hog contracts to open with a firm undertone, supported by growing evidence of stronger fundamentals. The cattle complex is likely to open under pressure, checked by follow-through selling and long liquidation. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 50-100 LR Live Equiv $159.24 + 0.22* Hogs: $1-2 HR Futures: 50-100 HR Lean Equiv $ 86.29 + $2.03** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Midweek has been a popular (and bullish) time to trade cattle this spring. So maybe we'll see significant trade volume develop sometime today. Yet if bulls plan to hold the line, business may have to wait until Thursday and Friday. A small cash test did surface in parts of Nebraska and Iowa as one regional buyer secured several thousand head around $225, about $5 lower than last week's weighted average basis Nebraska. It remains to be seen how much of a crack in bullish psychology this represents. Perhaps it was just a function of hedgers taking advantage of the basis. The motivation of both buyers and sellers could well be shaped by further swings in live and feeder futures. Live and feeder contracts are likely to open lower, pressured by follow-through selling, long liquidation, and cash uncertainty.