DTN Early Word Livestock Comments 04/11 06:33

DTN Early Word Livestock Comments 04/11 06:33 Livestock Traders Will Exercise Caution Friday was another day when cattle futures were not able to accomplish much. The market seems to be in a consolidation mode and may remain that way much of this week. Hogs followed much of the same pattern with the exception of October and later contracts as they pushed higher during the second half of the week. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Mixed. Live Equiv: $202.04 -$0.64* Hogs: Steady. Futures: Mixed. Lean Equiv: $110.67 +$0.15** *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: Steady cash cattle trade last week, with business being done throughout the week, limited upside potential but also held support. Sad to say, there is not much hope for higher cash this week with cash trade potentially surfacing earlier rather than later. Packers have some animals contracted ahead and markets will not be open on Friday. Futures seem to be moving in a sideways range again which may continue much of this week. Boxed beef prices were lower on Friday with choice down $0.93 and select down $0.89. USDA raised their estimate for beef production this year by 140 million pounds on the World Agricultural Supply and Demand report. This is in line with the what the Cattle of Feed report showed. They raised production for the second and third quarters while reducing output for the fourth quarter compared to their March estimates. The increase of grain prices from the report will have a negative impact on price potential.