DTN Early Word Livestock Comments 04/06 06:17

DTN Early Word Livestock Comments 04/06 06:17 Cash Continues to Support Futures Feeder cattle led the charge Monday with live cattle not far behind. Strong boxed beef and the anticipation of higher cash turned traders into more aggressive buyers. Hogs settled back, but the price action did not change the trend. Futures are expected to resume the uptrend. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $191.17 +$3.56* Hogs: Higher Futures: Higher Lean Equiv: $115.88 -0.22** * 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: Both feeder cattle and live cattle futures pushed to new highs in most contracts. The anticipation for higher cash is giving traders confidence to add to already long positions. Substantially higher boxed beef prices keeps solid support under the market. There is no sign of demand letting up. Seasonally, demand should improve and prices should increase. This year, demand may be greater as stimulus checks and the increasing desire of people to gather outside will increase grilling demand. Cash prices are expected higher this week, but trading will likely wait until the second half of the week. Cumulative beef export sales this year have reached 441,226 metric tons (mt), 89,443 mt higher than the same period last year. The Commitment of Traders report showed funds adding to their long positions. Funds added 3,682 net-long positions, bringing their total net-long positions to 83,237 contracts.