News & Resources

DTN Early Word Livestock Comments 04/03 06:21

3 Apr 2024
DTN Early Word Livestock Comments 04/03 06:21 Strong Cash, Cutouts May Support Hog Futures Wednesday Cattle futures spent some time in negative territory Tuesday, but were able to close higher, regaining some of the losses of Monday. Feeder cattle led the charge with triple-digit gains. Hogs traded on both sides of the market, making new contract highs again with strong cash. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $225.47 -$1.33* Hogs: Higher Futures: Higher Lean Equiv: $103.10 +$0.52** *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: Tuesday, cattle were able to regain some of the losses from Monday but had a difficult time doing it. Futures came back from lower prices during the last half hour of trade to post a nice close. Further strength may be difficult unless boxed beef prices improve. Boxed beef prices were lower Tuesday with choice down $1.58 and select down $2.80. Cash cattle have not yet traded, and it is anticipated to be lower this week. Cattle supplies remain tight but the current situation in the market leaves traders uncertain of the level of near-term demand from consumers. The state of Nebraska has issued a restriction on the importation of dairy cattle for a period of 30 days due to the HPAI virus found in dairy cattle. A special permit will be required during this time. This will be in place for 30 days at which time the restriction will be re-evaluated. This may begin a ripple effect in other states.