DTN Early Word Opening Livestock 04/15 06:14

DTN Early Word Opening Livestock 04/15 06:14 Pre-Cash Short-Covering to Support Higher Cattle Opening The cattle complex is staged to open moderately higher, supported by short-covering and premium packer bids. On the other hand, lean hog contracts should open on a mixed basis linked to a combination of residual selling and late-week profit-taking. By John Harrington DTN Livestock Analyst Cattle: Cash Steady-$2 HR Futures 10-30 HR Live Equiv $150.34 + $1.43* Hogs: Cash Steady Futures Mixed Lean Equiv $82.90 + .04** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cattle buyers and sellers will soon have to find common ground today, at least enough to facilitate light to moderate trade volume. Opening bids should be around $133 in the South and $214 to $215 in the North -- still well below asking prices of $136 to $138 in the South and $218 in the North. Packers are short-bought and well margined. On the other hand, if the board remains sluggish and implies strong basis levels, feedlot managers could suffer from a lack of leverage. Live and feeder futures are likely to open moderately higher, boosted by short-covering and ideas of steady/firm feedlot sales.