DTN Early Word Opening Livestock 04/21 06:32

DTN Early Word Opening Livestock 04/21 06:32 Markets Focus on COVID-19 Impact on Packing Industry The announcement that JBS's Worthington Minnesota pork plant will stop production due to COVID-19 cases is adding to the already widespread concern of keeping the livestock industry and meat markets rolling. This is further limiting overall capacity in an already stressed market. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $160.61 +6.27* Hogs: Lower Futures: Mixed Lean Equiv $ 71.67 +6.55** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: As expected, cash cattle activity remains dead in the water following lackluster interest from both sides Monday. Cash cattle trade is not expected until later in the week, with some questions about whether active cash market trade will develop this week. Concern continues about COVID-19 impacting the production levels at packing plants. Even though the meat packing industry is considered an essential industry, the increased cases of workers at these plants continues to be a significant challenge and a tricky balance between keeping the nation fed and keeping employee's safe. This will continue to challenge the supply system with ample cattle available to be processed, and strong retail demand at stores across the nation. But the concern is the processing and transportation industry, which links the process between livestock producers and consumers. Traditionally, this massive and complex system of processing live animals into table-ready meat products works seamlessly with very few people giving it a thought. But this has all changed over the last month as the coronavirus has impacted one of the most complex systems in agriculture. Mixed trade is likely to Tuesday morning as outside market pressure is redeveloping. The aggressive losses in expiring May crude oil futures has pushed the May contract to negative price levels for the first time in history. Many never even thought this was possible. The focus in crude oil is on the actively traded June contract, but sharp losses near $4 per barrel is showing increased weakness in the complex. The sharp rally in beef values Monday may have limited impact on futures trade as growing uncertainty of packer activity may further pressure cattle prices. Tuesday slaughter is expected at 95,000 head.