DTN Early Word Livestock Comments 04/25 06:18

DTN Early Word Livestock Comments 04/25 06:18 Volatile, Uncertain Start to Week Live cattle were more a victim of positioning ahead of the Cattle on Feed report than anything else. Futures gained around $2.00 last week due to higher cash prices and tighter supplies. Hogs made a nice rebound after three days of fund liquidation with higher cutouts posted Friday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv $199.61 -$1.30* Hogs: Higher Futures: Higher Lean Equiv: $118.70 +1.08** * 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 prices dipped Friday as traders positioned themselves ahead of USDA's Cattle on Feed report. The numbers on the report suggest further liquidation may likely unfold Monday. The only category on the report that was near expectations was marketings at 98% compared to the estimate of 98.2%. The other categories were bearish. On feed numbers were 102% compared the estimate of 100.4%. This is the highest number of cattle on feed since the series began in 1996. However, placements during the month really took the cake at 100% versus the average trade estimate of 92.2%. That is the most bearish number on the report, which has generated questions of the accuracy of the report. However, one could question the accuracy of the estimates as well. There are always two sides to every coin. In any case, traders have these numbers to trade today. Total beef inventory in March increased 11% according to the Cold Storage report. Boxed beef on Friday closed lower. Choice was down $2.26 with select down $0.96. Lower corn futures last week should provide some support for feeder cattle futures, but that will depend on the direction of live cattle futures.