DTN Early Word Opening Livestock 04/11 06:10

DTN Early Word Opening Livestock 04/11 06:10 Live and Feeder Futures Staged to Open With Decent Strength Expect the cattle complex to open solidly higher, supported by follow-through buying, technical encouragement and ideas of greater packer spending. On the other hand, lean hog futures are likely to trade mixed in the early rounds, tied to a slow combination of short-covering and long liquidation. By John Harrington DTN Livestock Analyst Cattle: $1-3 HR Futures: 50-100 HR Live Equiv $144.32 -.14* Hogs: Steady Futures: Mixed Lean Equiv $ 81.54 -.51** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: With many feedlot managers passing higher bids on Friday and fed cattle numbers likely to tighten through the balance of the month, prospects for further price strength in the country this week seem quite decent. Naysayers may understandably point to the struggling wholesale beef market that still looks pretty dead. At the very least, we feel confident that asking prices will start out significantly higher, probably around $138 to $140 in the South and $220 plus in the North. It's all theoretical with Monday morning activity no doubt limited to the distribution of new showlists. We expect the offering to be steady to somewhat smaller. Look for cattle futures to open higher, supported by follow-through buying, technical bullishness, and cash optimism.