DTN Early Word Livestock Comments 04/15 06:20

DTN Early Word Livestock Comments 04/15 06:20 Uncertainty Will Dominate Trading Activity Livestock futures came under substantial pressure Friday with triple-digit losses in all contracts. Traders do not like recent news that could further impact the cattle market. Hogs fell under the uncertainty of ongoing demand. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $222.78 +$1.10* Hogs: Higher Futures: Mixed Lean Equiv: $107.17 -$0.09** *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: We can say what we want about the tightness of cattle supplies, higher calf prices, feeder prices, and some buyers having a difficult time finding sufficient cattle for slaughter. However, the market is now being driven more by perception than tight cattle supplies. Traders do not like the uncertainty surrounding HPAI that has been found in dairy cattle and whether that could impact beef cattle and potentially impact demand. This flu is not considered a concern for food safety, but consumer perception is what will impact the market. Cash cattle traded lower last week with Southern cattle $2.00 lower at $182 and Northern cattle $2.00 to $4.00 lower, ranging from $293 to $295. Boxed beef closed higher with choice up $2.20, pushing it back above $300 again, while select gained $0.39. June cattle futures closed at the lowest level since Jan. 10 after falling below support Friday. USDA has proposed some changes to livestock publications. This may reduce some of the accuracy and transparency of certain reports. They plan on reducing the number of published states on the January Cattle Inventory report from 50 states to 31 states. The Commitments of Traders report showed funds reducing their net-long positions by 18,488 contracts to a net long of 42,136 contracts. Funds sold 3,049 futures contracts, bringing their net-long positions to 6,019 futures contracts.