DTN Early Word Livestock Comments 04/11 06:16

DTN Early Word Livestock Comments 04/11 06:16 Livestock Futures to Show Further Gains Livestock futures were higher across the board except for April hogs. New contract highs in the cattle complex keep both technical and fundamental traders active. Hogs are trying to find support, but traders have not been able to find any solid fundamentals. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $216.40 +$1.51* Hogs: Higher Futures: Mixed Lean Equiv: $84.33 -$0.84** *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 gains of cattle were limited to double digits as optimism is strong for higher cash, but traders are still exercising caution. The fact that packers were only able to purchase 18% of cattle last week for deferred delivery increases the likelihood of higher cash. Boxed beef was higher with choice up $1.93 and select up $2.62. Beef demand at these higher prices continues to be a surprise as it seems consumers prefer beef and will pay whatever the price to get it. Tightening cattle supplies will not go away anytime soon. Feeder cattle held their ground despite the rise of corn prices Monday. With strong beef prices and the outlook for that to remain, feeder cattle are in demand at the sale barns. USDA will release the World Agricultural Supply and Demand report Tuesday, which may have an influence on the market.