DTN Early Word Livestock Comments 04/24 06:21

DTN Early Word Livestock Comments 04/24 06:21 Pressure Likely on Cattle Complex Live cattle futures closed mixed Friday as traders were cautious ahead of the Cattle on Feed report. There were no further surprises for the cash market. Hog futures found some support after some initial weakness, likely on short-covering ahead of the weekend. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $225.22 -$0.39* Hogs: Steady Futures: Higher Lean Equiv: $87.48 +$2.30** *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: Cash cattle trade was basically done for the week with cattle prices steady to $1.00 lower in the South with dressed cattle in the North trading $2.00 lower. Futures were able to close higher for the week, except for April, which winds down to a close of the contract Friday. The influence on the market Monday will be the Cattle on Feed report. The on-feed numbers on April 1 were 96%, down 4% from a year ago, but higher than the trade expected. The average estimate was for on-feed numbers to be 94.8%. Added to this bearish surprise, placements for March were 99% compared to the average estimate of 94.9%. Marketings in March were 99% and slightly better than the average estimate of 98.8%. Although all categories are lower than a year ago, this is expected to be negative for the market as traders will react to the numbers relative to estimates. Added to this was lower cutouts Friday with choice down $0.39 and select down $0.94. However, with the strength of boxed beef the past two weeks, the decline Friday may not mean much unless weakness continues this week. The Commitment of Traders report showed funds increased their long futures positions by 11,999 contracts, bringing their net-long positions to 101,430 contracts. Funds increased their net-long feeder cattle futures positions by 2,441 contracts, bringing their net-long positions to 9,941 contracts.