RENEWED BULL SPREADING LIKELY ON CATTLE REPORT Livestock analysts expect renewed bull spreading in live cattle futures following yesterday's USDA 7-state cattle on feed report. The USDA reported high placements in February, which may weigh on back months of cattle futures. Meanwhile, continued strong marketings during the month will support the April contract. Contracts for June delivery forward could open 25 to 50 cents lower while April will likely open about steady, analysts said. Cheap corn is still the main incentive for putting cattle on feed, according to Smith Barney livestock analyst Tom O'Hare. "They have no place to send the grain," he said. Strong daily fundamentals may add to nearby support while the current discount of deferred months to the cash market may offset much of the effect of the report, analysts said. "The cash market is strong and may overshadow the report," said Robin Fuller, analyst for Agri Analysis. She added that even though placements came in above the average trade guess, many traders had expected high placements. Placements are not that negative, especially since the technical correction in June and August live cattle futures since last week, GH Miller analyst Jerry Gidel said. He said the current marketing posture will provide added support to the nearby month. Feedlot marketings have been running at a heavier than expected pace. Chuck Levitt, analyst for Shearson Lehman said that with the number of cattle on feed down five pct at the beginning of the year, a three pct decline in marketings was expected. But the report for January showed marketings at 101 pct of a year ago and in February marketings were at 100 pct, Levitt noted. "So far we haven't seen any decline in marketings. They (feedlot operators) are marketing more cattle than they had intended for the first quarter, which is a bullish development," Levitt said. Gidel also noted that marketings for the early part of March are running ahead of a year ago. Feedlots are not falling behind and are holding that 100 pct marketing pace.