DTN Early Word Livestock Comments 04/25 06:17

DTN Early Word Livestock Comments 04/25 06:17 Fundamentals Indicate Price Direction Live cattle futures closed higher in April and May contracts while the rest of the cattle complex closed lower. Hog futures had another nice day of higher prices as both technical buying and cutout prices provided support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $225.66 +$0.44* Hogs: Steady Futures: Lower Lean Equiv: $85.73 -$1.75** *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: Cattle futures opened substantially lower in reaction to the Cattle on Feed report, but rejected those lows over time as traders looked at the long-term picture that the current tightness of the market did not change over the weekend or because of the report. On top of that is the disbelief by some that the report was inaccurate relative to what was anticipated. With boxed beef higher in both categories again Monday, it may provide more confidence to traders to buy back into the market. Choice cutouts increased $0.52 with select up $0.90. There is no indication as to the direction of cash this week, which may keep futures mixed until there is better indication of the resolve of either packers or feedlots. Feeder cattle futures closed lower across the board, but did come back from the early lows as the psychology of traders kicked in. The April feeder contract is winding down with the final trading day Thursday.