DTN Early Word Livestock Comments 04/26 06:13

DTN Early Word Livestock Comments 04/26 06:13 Follow-Through Selling Anticipated Cattle futures reacted to bearish Cattle on Feed report as anticipated in conjunction with higher corn prices. Futures gapped lower on the open and never looked back. Hogs led the weakness due to uncertainty of demand and further weakness of cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $199.33 -$0.28* Hogs: Steady Futures: Lower Lean Equiv: $113.21 -$5.49** *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 live and feeder cattle futures gapped lower on the open Monday and did not recover. The surprise of placements in the Cattle on Feed report sent the market reeling. April live cattle futures finish trading on Friday and are now holding a discount to cash. However, cash trade has not yet been established for the week. There seems to be some indication of packer interest developing early again this week and potentially at higher prices. However, the weakness of futures and increasing corn prices may have packers attempting to use that as leverage. Boxed beef prices were mixed with choice down $1.31 and select up $1.75. Feeder cattle futures were pressured from live cattle futures as well as higher corn futures. Overnight corn was higher, which may limit any price rally for the time being. The Commitment of Traders report showed funds as net buyers of 7,309 live cattle contracts, bringing their net-long position to 46,807 contracts.