DTN Early Word Opening Livestock       05/17 06:04
   Early Buying Interest to Support Lean Hog Futures

   Lean hog contracts seem geared to open moderately higher, supported by
follow-through buying and stronger carcass value. Live and feeder futures
should open on a mixed basis as traders position ahead of cash and on feed
news.

By John Harrington
DTN Livestock Analyst



Cattle: Steady-$1 LR         Futures: mixed      Live Equiv $141.69 + 0.19*
Hogs:   Cash Steady-0.50 HR  Futures: 10-30 HR   Lean Equiv $100.41 +$1.43**
* 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 clock is running for short-bought cattle buyers and we expect to see
moderate trade volume surface sometime between late morning and early
afternoon. On one hand, profitable packers should have a vested interest in
funding aggressive chain speed. On the other hand, buyers are hoping that the
defensive psychology fostered by board discounts will help them maintain
maximum margins. For their part, feedlot managers, still armed with firm asking
prices of $127-plus in the South and $204-205 in the North, are betting that
fed supplies remain tight enough to command the spending attention of needy
packers. The May 1 on-feed report will be unveiled this afternoon at 2:00 CDT.
Average pre-trade guesses expected on feed to be 3-4% smaller; April placement
to be 12% larger, and April marketing to be 3% greater. Live and feeder futures
should start out on a mixed basis with specs and commercial cautiously
jockeying ahead of cash news and the release of the on-feed report.