DTN Early Word Livestock Comments 04/10 06:26

DTN Early Word Livestock Comments 04/10 06:26 Some Initial Follow-Through May Unfold All cattle futures gapped higher at the open and never looked back Thursday. Significantly higher cash trade late Wednesday prompted the jump in futures. Hogs did not follow the same pattern, spending time on both sides of unchanged, except for nearby April. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $214.89 +$0.48* Hogs: Steady Futures: Mixed Lean Equiv: $85.17 -$0.78** *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: Traders had been cautious, waiting to see what cash cattle trade was going to show before becoming more aggressive. The substantial increase of cash on Wednesday was the catalyst for traders to buy into the market right from the opening. All contracts for both live and feeder cattle gapped higher and never looked back. New contract highs were posted across the board in live cattle and in August and later feeder cattle contracts. Demand for beef is strong with slaughter weights running lower than the previous week and significantly lower than the previous year. Cattle are being pulled ahead to obtain the required tonnage of beef. Boxed beef was mixed Friday with choice up $1.33 and select down $0.85. There could be some initial follow-through Monday, but it may settle down somewhat as traders will again wait for direction from cash. The Commitment of Traders report showed funds adding 23,744 long futures positions as of April 4, bringing their net-long positions to 83,230 futures. Feeder cattle increased by 541 futures contracts, bringing their net-long positions to 6,519.