DTN Early Word Opening Livestock 04/27 06:41

DTN Early Word Opening Livestock 04/27 06:41 Hope Developing That Bullish Cattle on Feed Report Sparks Buying Less outside news media focusing on the closed or slowed meat processing industry is not likely to change the limited ability of packers to move cattle and hogs through the system. Initial focus is expected to be on Friday's Cattle on Feed report, which could bring buyers back into the complex. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $188.13 +5.33* Hogs: Mixed Futures: Mixed Lean Equiv $ 82.47 +1.11** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Generally light overall cash cattle trade developed last week with prices covering a generally wide range. The full range in Southern live trade was $148 to $160 per cwt, generally $5 per cwt lower than the previous week. Northern dressed trade was from $93 to $100 per cwt, lower than the previous week by $5 per cwt and more. Limited interest is expected this week even though there has been light buying in the last several weeks. The lighter production levels at plants have left packers with little incentive to purchase additional cattle. The continued uncertainty of plant operations of outbreaks in each plant is a day-to-day issue that will continue to be closely monitored on all levels. This will continue to create significant concern in all areas of the industry, but will likely leave cattle feeders with few options on where to send market-ready cattle. Friday's Cattle on Feed report posted supportive news as placements and total on-feed levels fell significantly from year-ago levels. Reductions were expected, but given the uncertainty in the market and variability of pre-report estimates, traders went into the report not having confidence in what overall direction would be. With feedlot cattle at 95% year-ago levels, and placements in March 77%, the focus on tighter long-term supplies is expected to help stimulate buying through the end of 2020 and early 2021. Futures are expected mixed in limited trade, as potential support from Friday's Cattle on Feed report is likely to spark deferred buying, which may quickly trickle through the rest of the complex. Monday slaughter is expected at 88,000 head.