DTN Early Word Livestock Comments 04/05 06:17

DTN Early Word Livestock Comments 04/05 06:17 Futures Expected to Rebound The livestock complex was lower across the board Tuesday, even though corn prices were lower. Live cattle were lower with traders cautious over the strength of cash this week. High beef prices may impact demand. Hogs fell apart after spending a brief period in positive territory. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $213.85 +$2.21* Hogs: Higher Futures: Higher Lean Equiv: $84.12 -$1.47** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. Index has been updated to depict recent changes in live cattle weights and grading percentages. ** based on formula estimating lean hog equivalent of gross packer revenue. GENERAL COMMENTS: The large increase in cash cattle last week leaves traders a bit skeptical whether higher cash can again be achieved this week. However, with strong boxed beef prices so far this week, feedlots will hold out for higher prices. Packers may be willing to spend more as their profit margins are being maintained after the large cash increase last week. Boxed beef prices were strong with choice up $2.85 and select up $3.77. Tightening cattle supplies should keep the market supported, unless demand begins to falter. Feeder cattle showed a similar pattern as live cattle futures. Feeders closed under pressure despite the weakness of corn. Feeder cattle were higher earlier Tuesday but succumbed to some spillover pressure from live cattle.