DTN Early Word Livestock Comments 04/23 06:24

DTN Early Word Livestock Comments 04/23 06:24 Rebound of Futures Likely Friday It was not a good day Thursday in the livestock complex as increasing grain prices put substantial pressure on futures. Bright spots have been few this week, but the possibility of lower grain prices Friday might provide some support. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Higher Live Equiv: $208.32 +1.29* Hogs: Steady Futures: Higher Lean Equiv: $121.21 +1.06** * 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: Feedlots were looking at the market Thursday with only one eye open, and they were squinting with the open eye as well. It was painful to watch as cattle futures posted triple-digit losses in numerous contracts while corn prices rocketed higher. Cash traded lower and packers were able to extend their purchases further into the future. This does not bode well for the near term. Boxed beef closed nicely higher Thursday, but although friendly, the focus was on grain prices. The weekly Export Sales report was not even enough to stem the swelling tide of weakness even though sales were 57% higher than last week and 38% higher than the previous week. Cash trading is mostly done for the week, setting a bearish tone for next week. There may be bright spot Friday. Some short-covering may take place and overnight corn futures are nearly eliminating half of Thursday's limit gains.