DTN Early Word Livestock Comments 04/09 06:21

DTN Early Word Livestock Comments 04/09 06:21 Cattle Futures May See Further Support Tuesday Live cattle futures were able to close in positive territory Monday as the heavy liquidation may have run its course. The discount to cash and the huge jump in boxed beef prices may provide support. Hogs closed in positive territory with new highs in most months and new contract highs in some months. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $224.70 +$3.60* Hogs: Higher Futures: Higher Lean Equiv: $106.30 +$2.58** *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: Live cattle spent much of the day on the positive side of the ledger with nearby months showing the most gains Monday. The liquidation phase may have run its course with futures below cash and cattle numbers remaining tight and expected to remain that way throughout the year. Support Tuesday may come from the huge increase in boxed beef prices Monday. Choice cuts jumped $4.90, moving the price back above $300 and ending at $302.07; select jumped $5.57, closing at $300.27. This should provide support for the market, indicating consumers have not backed away from beef. It already seems as if avian flu in dairy cattle is beginning to become old news as it has been circulating for a few weeks. So far, there is no indication of concern over the safety of the food supply. However, traders will be cautious for a time, and a substantial rebound in futures may be difficult to unfold.