DTN Early Word Opening Livestock 05/13 06:28

DTN Early Word Opening Livestock 05/13 06:28 Cattle Market Firmness Expected Follow-through buying is expected through the cattle complex during early-week trade as traders continue to focus on the previously oversold status of the complex and increased interest developing in the next couple of weeks. By Rick Kment DTN Analyst Cattle: Steady Futures: Higher Live Equiv: $144.24 -0.43* Hogs: Steady Futures: Mixed Lean Equiv: $ 91.17 -0.62** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Strong late-week buying moving into cattle trade last Friday is expected to stimulate additional interest in both live cattle and feeder cattle trade. The underlying support redeveloping in the complex will need additional confirmation, but if follow-through gains develop early in the week, this should be enough to establish support levels and bring buyers back into the complex. The overall pullback in the complex the last couple of weeks should be enough of a market correction to reset additional long-term buyer activity with June live cattle futures trying to build on $112 per cwt price levels. Cash cattle trade is expected to remain sluggish, although the early-week activity in the last month is expected to stimulate additional interest the next couple of days. Bids and asking prices are likely to remain undeveloped Monday with showlist distribution and inventory-taking the main focus of the day.