DTN Early Word Opening Livestock 04/18 06:23

DTN Early Word Opening Livestock 04/18 06:23 Meat Futures Likely to Open on a Firm Basis Expect lean hog contracts to open the week moderately higher, supported by follow-through buying and firming carcass value. The cattle complex should also begin on a firm basis thanks the premium status of feedlot sales and seasonally strong beef demand. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 10-30 HR Live Equiv $150.71 + .37* Hogs: Steady-$1 HR Futures: 10-30 HR Lean Equiv $ 84.12 + 1.22** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Though fed offerings are expected to stay historically tight between now and early summer, no one disputes the suggestion that the next major shift in numbers will be larger in nature. Accordingly, we may be moving into a two-tier market with short-term delivery sales firm and long-term delivery sales softer. Of course, activity Monday will be limited to the distribution of new showlists. We expect the new offering to be steady to somewhat larger. Preliminary asking prices should be around $136 in the South and $218 plus in the North. Cash potential this week could depend a great deal about the ability or disability to converge (i.e., basis). Live and feeder futures seem likely to open moderately higher, supported by residual buying interest, the premium status of cash sales, and ideas of seasonally positive fundamentals.