DTN Early Word Livestock Comments 04/10 06:20

DTN Early Word Livestock Comments 04/10 06:20 Cash Hogs May See Further Strength Wednesday Traders seem to be gaining a little more confidence in the cattle complex and have stepped back in to purchase more aggressively. There is some optimism for cash trade to hold steady this week. Hog futures continue to hold momentum, making new highs daily on strong demand. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $224.47 -$0.23* Hogs: Higher Futures: Higher Lean Equiv: $106.68 +$0.38** *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: There is anticipation that cash cattle will trade at least with steady prices this week. Feedlots may feel more confident about holding out for higher cash. That has increased the confidence of traders to step back into the futures market more aggressively on the buy side due to the discount to cash. The overall fundamentals of the market itself remain bullish. The unexpected impact of the avian flu virus sent cattle futures lower even though the virus had not been discovered in beef cattle. The reaction to the uncertainty may have run its course. Boxed beef prices did not do much with choice up $0.02 and select down $0.34. It may be difficult for the market to overcome the sharp losses of the past three weeks as traders will remain cautious.