DTN Early Word Opening Livestock 04/17 06:34

DTN Early Word Opening Livestock 04/17 06:34 Cash Cattle Trade Focus of Friday Market Direction Packers and feeders have reached the end of the week with little direction seen in the cash cattle market. Lighter packer runs will counter higher futures and beef values as negotiations develop. By Rick Kment DTN Analyst Cattle: Steady to Lower Futures: Mixed Live Equiv $153.15 +2.97* Hogs: Lower Futures: Lower Lean Equiv $ 60.82 +3.76** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: With the week quickly coming to a close, little direction has yet been seen in cash cattle trade. The underlying support in futures trade and strong push higher in wholesale beef values, combined with limited cash trade last week would suggest that packers would become moderately aggressive when it comes to steady-to-higher prices. Growing concerns of lighter packer runs, and how this will affect procurement levels through the end of the month, may limit increased bids by the end of the week. The limited cash cattle market in the North so far this week is not enough to establish a good market test, but significant gains in packer bids are needed to close the gap between bids and asking prices. Asking prices are expected to remain near previous levels of $108 live basis and $168 and higher dressed. But if packers do not deviate away from recent bids of $155 per cwt dressed basis, significant cash prices pressure may be seen at the end of the week. Futures trade has gained support through the last couple of days, based partially on the significant discount to cash markets. Although cash basis levels have moved away from near record highs over the last week, a move to more normal basis levels in the upcoming weeks would be a concern and could spark some underlying market swings.