DTN Early Word Livestock Comments 04/20 06:12

DTN Early Word Livestock Comments 04/20 06:12 Cattle Futures Prices Adjust to Higher Cash Trade Packers wanted and needed cattle with more trade developing in the South $1.00 higher than last week. However, Northern dressed cattle bids jumped $4.00 higher where feedlots let go of cattle, calling it a victory. Hogs pushed into positive territory for a time, supported by the early rise of cash and cutouts. Unfortunately, those prices did not hold through the day Tuesday. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $201.45 -$0.62* Hogs: Higher Futures: Mixed Lean Equiv: $114.54 -$2.37** *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: Live cattle struggled for a little while but finally found support from strong cash trade in the North. Feedlots were expected to hold out for higher prices, which could have delayed cash trade until Wednesday or later. However, packers stepped up to the plate, paying $4.00 more for Northern dressed cattle. This was the catalyst needed to move futures to a higher close. The gains, although positive, were somewhat subdued as boxed beef prices closed lower. Choice declined $1.15 with select down $0.25. This does seem to be much of a loss, but it is a barometer of demand. Packers may hold back in the weeks to come if boxed beef does not continue to perform well. Higher cash in both the North and South is expected to remain for the rest of the week as the bar.