DTN Early Word Opening Livestock 04/15 06:31

DTN Early Word Opening Livestock 04/15 06:31 Packer Shutdowns Limit Processing Capability Growing uncertainty about the ability for packers to maintain active schedules due to continued virus outbreaks has created additional concerns in cash and futures trade. By Rick Kment DTN Analyst Cattle: Lower Futures: Mixed Live Equiv $147.12 +1.41* Hogs: Lower Futures: Mixed Lean Equiv $ 58.03 +0.20** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cash cattle activity is still undeveloped going into Wednesday morning with bids and asking prices seemingly hard to pin down. With the lighter expected packer runs and increased troubles keeping plants either operational or near full speed, the question of how many additional cattle will need to be bought to fill the lighter runs could delay most cash market activity until late in the week. The announcement that the JBS plant in Greeley, Colorado, will be closed with an anticipated reopening the last week in April will not only create significant uncertainty in the market, but will also cause a major impact in overall numbers of cattle moving through the system. This announcement is not significantly shocking, until now on the beef processing side, small and midsize plants had been closed, leaving this affecting the entire system mindless of operational size. Cattle futures trade is expected to open mixed as traders sort out a combination of outside market moves while trying to adjust to the changing dynamic of beef processing and demand challenges facing the industry. The lighter processing speeds at plants from a futures market standpoint is expected to help relieve some of the pressure off of tumbling beef demand and support beef values once again. But this continues to create an even greater disconnect between live animal prices and retail market prices through these changing market conditions. Wednesday slaughter is expected at 88,000 head.