DTN Early Word Opening Livestock 04/30 06:18

DTN Early Word Opening Livestock 04/30 06:18 Futures Should Find Support as Cash Surges While cattle futures are entrenched in a sideways pattern with June in the range of $80 to $88, boxed beef cutouts made new all-time highs for the fifth consecutive day. Pork cutouts closed up sharply Wednesday as demand increases due to consumer concern over meat supply. By Robin Schmahl DTN Dairy Analyst Cattle: Steady Futures: Higher Live Equiv: $227.46 +14.84* Hogs: Steady Futures: Mixed Lean Equiv: $ 95.72 + 2.24** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: While cattle futures are entrenched in a sideways pattern with June in the range of $80 to $88, boxed beef cutouts made new all-time highs for the fifth consecutive day. Cutouts have gained over $100 during the past 15 trading sessions. This leaves a huge discount of futures to cash. Light cash trading took place in the north around $150 with light activity in the South, but price was less defined, ranging from $90 to $100. Trade should pick up Wednesday. Even through there is a large discount of futures to cash, there is a backlog of cattle that will need to move through the market as packing plants are ordered to resume or continue to operate. Packers will not be concerned over supply and will not bid up higher until supplies become current.