DTN Early Word Livestock Comments 04/20 06:24

DTN Early Word Livestock Comments 04/20 06:24 Cash Uncertainty May Keep Pressure on Cattle Cattle came under pressure Wednesday as cash cattle began trading steady to $1.00 lower. Spread trading dominated feeder cattle futures. Hogs closed mostly higher due to better cutouts the previous day and an oversold market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $225.65 -$0.59* Hogs: Steady Futures: Mixed Lean Equiv: $83.84 -$2.12** *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: Trading in the cattle complex Thursday will be driven by cash cattle trade steady to $1.00 lower in Texas and Kansas. There was no trade in the North, leaving that open to speculation. Wednesday's cash activity may set the stage for the rest of the week. Lower cash should not be a big deal due to the large increase in cash last week. However, trader perception will drive the futures market. Boxed beef prices were lower in both categories, which we have not seen for a while. Choice declined $1.14 with select down $0.15. Cattle futures may be in for a further price correction if cash trades no better than steady and further weakness is seen in boxed beef. The Cattle on Feed report will be released Friday. On feed numbers on April 1 are estimated at 94.8%. Placements during the month of March at 95.2%. Marketed in March is estimated at 98.9%.