DTN Early Word Opening Livestock 04/13 09:27

DTN Early Word Opening Livestock 04/13 09:27 Live and Feeder Issues Set to Open Moderately Higher The cattle complex should open some higher Wednesday morning, supported by strengthening carcass value and past patterns of seasonal bullishness. On the other hand, lean hog futures seem set to open on a mixed basis tied to profit-taking and inconsistent spreading strategies. By John Harrington DTN Livestock Analyst Cattle: $1-3 HR Futures: 10-30 HR Live Equiv $147.00 + 1.66* Hogs: Steady Futures: Mixed Lean Equiv $ 81.74 - .17** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: So far this week, we've seen nary a bid in feedlot country, almost as if packers couldn't care less if they kill another steer or heifer. We doubt they can fake such indifference for much longer. Look for at least a few preliminary bids start to crop up Wednesday, no doubt far below expected asking prices of $138 plus in the South and $220 plus in the North. Nevertheless, the courtship of cash negotiations has to start somewhere. Our guess is that the dating won't turn hot and heavy until sometime Thursday or Friday. Margin-stressed processors are having some success in forcing carcass value higher. Obviously they'll focus on further gains in the beef trade through the end of the week. But regardless what happens in the wholesale trade, cattle buyers may be forced to deal with fed supplies that still appear to be tightening. Live and feeder futures are staged to open moderately higher, supported by firming carcass value and ideas of formidable feedlot leverage in the cash trade.