DTN Early Word Opening Livestock 04/22 06:56

DTN Early Word Opening Livestock 04/22 06:56 Mixed Open in Cattle Futures Likely on Pre-Cash, Pre-Report Action Look for live and feeder futures to open on a mixed basis as traders jockey ahead of cash business and the release of the April 1 Cattle on Feed report. Similarly, lean hog contracts should begin with slow, uneven price action as bulls and bears position ahead of the weekend break. By John Harrington DTN Livestock Analyst Cattle: Cash Steady-$2 LR Futures Mixed Live Equiv $148.50 - .77* Hogs: Cash Steady-$1 HR Futures Mixed Lean Equiv $85.72 +$1.26** * 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, the distance between bids and asking prices has remained huge, as much as $5 to $6 on a live basis (e.g., $127 versus $132-plus basis the South). Somehow, that distance will have to narrow today in order to stimulate light to moderate trade volume. Given the defensive board, struggling cut-outs, and extraordinary basis strength, feedlot sales seem destined to end up lower than last week. The bigger question is probably how much lower. The April 1 Cattle on Feed report is scheduled to be unveiled this afternoon at 2:00 CDT. Average trade guesses look like this: on feed, up 1%; placed in March, up 7-8%; marketed in March, up 6-7%. Live and feeder futures are staged to open on a mixed basis as traders position before the development of cash news and/or the announcement of on feed numbers.