DTN Early Word Opening Livestock 04/20 06:44

DTN Early Word Opening Livestock 04/20 06:44 Packer Processing Levels Leads Market Focus The impact of COVID-19 has been most evident on the packing and processing industry as it has significantly limited meat production the last couple of weeks. Uncertainty about how plants will be able to regain production speeds may leave markets unsettled. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $154.34 +1.19* Hogs: Lower Futures: Lower Lean Equiv $ 65.12 +4.30** * 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 cash cattle trade remaining light the last two weeks, limited overall direction is expected on the development of cash movement early in the week. Both sides are expected to remain generally quiet early in the week despite the overall lack of active trade at the end of last week. It will be interesting to see just how many cattle are reported sold when the morning report is released. The pullback in plant speeds over the last week will likely continue to limit aggressive buying of packers, but all packers should be starting to become short-bought going into the last two weeks of April. This may add increased focus for earlier week trade, but there is uncertainty over packers being able to keep plants running due to virus outbreaks, which significantly limits potential cash market activity. Showlists are expected to remain higher given that overall cash trade and packer movement has been limited through most of April. Until packers get back to a more normal schedule, it is likely that cash market trade will remain limited. Futures trade is expected mixed Monday morning. The ability to hold late week gains in most live cattle and feeder cattle contracts last week, especially deferred contracts, as well as firming beef values may spark early follow-through buyer support. But outside market pressure developing during overnight trade is likely to curb the optimism in livestock trade, as these outside influencers may have a more significant impact in morning trade. Monday slaughter is expected at 93,000 head.