DTN Early Word Opening Livestock 04/13 05:56

DTN Early Word Opening Livestock 04/13 05:56 Meat Futures Staged to Open Late-Week Market with Firm Prices Look for cattle contracts to open solidly higher with the help of follow-through buying and decent cash prospects. Lean hog futures will begin with a firm undertone thanks to bullish momentum and strengthening country sales. By John Harrington DTN Analyst Cattle: Steady-$2 HR Futures: 50-100 HR Live Equiv: $140.62 -.27* Hogs: $1 HR Futures: 50-100 HR Lean Equiv: $ 70.97 +.20 * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: This is the first time in weeks that cattle trading leverage has been balanced enough to delay the development of significant trade volume until Friday. Yes, some cash business did surface in parts of Texas Thursday (i.e., $117 to $118, near steady with last week), but most showlists remain unsold thanks to a degree of feedlot confidence we haven't seen in a long time. Will that confidence bear fruit in terms of higher country sales? That question may not be answered until late Friday afternoon. To be sure, packers are short bought. On the other hand, processing margins are narrowing and the cold spring at this time does not seem too promising in terms of better beef demand. Asking prices should be renewed around $120 to $122 in the South and $190 to $192 plus in the North. Live and feeder futures should open higher, boosted by follow-through buying and cash optimism.