DTN Early Word Livestock Comments 04/12 06:17

DTN Early Word Livestock Comments 04/12 06:17 Mixed Trading Activity Expected Cattle made new contract highs again Tuesday with feeder cattle leading the charge. Lower corn futures and cash optimism supported the market. Hogs came under pressure after initially posting gains. Packers were unaggressive and not paying more for hogs. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $218.28 +$1.88* Hogs: Steady Futures: Mixed Lean Equiv: $84.73 +$0.40** *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: There does not seem to be a top in the cattle market. Boxed beef prices are increasing but packer margins are not improving as higher cash is needed to purchase cattle to maintain slaughter pace and meet demand. Boxed beef Tuesday was higher with choice up $2.19 and select up $3.64. Cash may begin to trade Wednesday as packers want to take care of business earlier in the week as they are not in the positions to hold out until late in the week. Cash is expected to be higher. Traders have not been waiting this week until cash trades but have been pushing futures higher in anticipation. USDA had some supportive estimates on the WASDE report Tuesday. The average price for steers this year was $2.50 higher than the March report with a current average price of $164.50. If this comes to fruition, it would be an increase of $20.10 over the average price for 2022.