DTN Early Word Opening Livestock 05/31 06:14

DTN Early Word Opening Livestock 05/31 06:14 Cattle Futures Seem Set to Open Moderately Higher at Midweek Live and feeder futures should open moderately higher, supported by follow-through buying and cash premiums. Lean hog contracts are staged to begin on a mixed basis thanks to residual selling and midweek short-covering. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 LR Futures: 50-100 HR Live Equiv $159.53 + .18* Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 95.43 - .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: Cash cattle action should be slow in developing Wednesday. Feedlot managers will probably keep one eye on the board and the other on news from the FCE. Given the holiday-shortened schedule, it's more difficult than ever to predict the timing of cash business. Yet significant trade volume could easily be postponed until Thursday or Friday. At this point, we assume asking prices will start out around $134 in the South and $210 to $212 in the North. Live and feeder futures are set to open moderately higher, supported by follow-through buying and still-large cash premiums.