DTN Early Word Opening Livestock 04/05 05:50

DTN Early Word Opening Livestock 04/05 05:50 Livestock Futures Likely to Open Higher Thanks to Follow-Through Buying Look for the cattle complex to open moderately higher, supported by Wednesday's reversal and cash premiums. Lean hog futures should also begin Thursday with a firm undertone thanks to short-covering and residual buying. By John Harrington DTN Analyst Cattle: Stdy/wk w/Tues Futures: 50-100 HR Live Equiv: $144.39 -1.47* Hogs: Stdy-$1 LR Futures: 50-100 HR Lean Equiv: $ 75.09 -1.07** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: If Wednesday's reversal in cattle futures shows some staying power Thursday, feedlot managers may feel more comfortable in pricing cattle on a stronger basis (e.g., $120 in the South; $190 to $192 in the North). On the other hand, if Wednesday's pop proves to be a one-trick pony, sellers could be forced to deal with soft packer bids. Either way, light-to-moderate volume should develop sometime Thursday and/or Friday. Live and feeder contracts should at least open higher thanks to follow-through buying and short-covering.