DTN Early Word Opening Livestock 05/11 06:00

DTN Early Word Opening Livestock 05/11 06:00 Meat Futures Staged to Open Moderately Higher Cattle futures seem likely to open moderately higher, supported by short-covering, firming cutouts and cash premiums. Hog contracts should also trade some higher in the opening rounds with the help of bull-spreading interest and improving fundamentals. By John Harrington DTN Livestock Analyst Cattle: Generally LR Futures: 25-50 HR Live Equiv $160.59 +1.35* Hogs: $1-2 HR Futures: 25-50 HR Lean Equiv $ 86.39 + .10 * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: The level of cattle-buying activity Thursday will depend on several factors. First of all, we need to get a better handle on the exact size of trade volume that actually developed in Kansas and Texas on Wednesday. Mandatory totals will be important to check later Thursday. There's a chance that Southern business is actually done for the week. Second, it will be critical to see how further bold action impacts either the willingness of Northern packers to raise bids or the readiness of regional feedlot managers to lower asking prices. Our guess is that asking prices will start out around $140 plus on a live basis and $228 plus on a dressed basis. It's certainly possible if both sides dig in that significant trade volume in the North could be delayed until sometime Friday. Live and feeder should open moderately higher, supported by short-covering and the premium status of recent cash sales.