DTN Early Word Livestock Comments 04/26 06:18

DTN Early Word Livestock Comments 04/26 06:18 Trader Cautious Over Cash The cattle complex settled lower Tuesday. Cattle traders are uncertain over cash this week due to what took place last week and variable boxed beef prices. Hogs were under some pressure in nearby months due to weaker cutouts Monday with later contracts posting minor gains. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $225.72 +$0.06* Hogs: Steady Futures: Mixed Lean Equiv: $85.46 -$0.27** *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: Packers will likely try to purchase cattle at steady money or lower again this week. The recent variableness of boxed beef may indicate a slight slowing in demand. Tuesday, boxed beef prices were mixed with choice up $0.51 and select down $1.08. Traders need to see something to cause them to support this market in the near term or a further price retracement is possible. We know cattle numbers are lower than last year, which should be supportive if demand remains strong. However, consumer demand needs to remain strong, or prices will slip lower. Some asking prices were posted in the South at $176, but nothing else has been posted. Feeder cattle futures were quite variable with some contracts posting triple-digit losses and some showing minor losses with August closing higher. Total beef in cold storage in March was 10% lower than a year ago and declined 19.3 million pounds from February, totaling 480.9 million pounds.