DTN Early Word Livestock Comments 04/01 06:19

DTN Early Word Livestock Comments 04/01 06:19 Hog Futures May See Early Pressure Early trade will be interesting Monday as cash cattle traded lower last week and the Quarterly Hogs & Pigs report was released after the close on Thursday. Traders had an extended weekend to ponder what their course of action would be to begin the week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $227.64 -$0.32* Hogs: Steady Futures: Mixed Lean Equiv: $99.63 -$0.84** *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: Cash cattle traded lower before the close of the futures market Thursday, but that did not seem to have much impact on the market as live cattle futures closed with triple-digit gains. Maybe traders were in denial that the bulk of cattle would trade lower for the week. However, trade continued to develop for the rest of the week, ranging from $2 to $3 lower. Boxed beef prices Friday were mixed with choice down $1.64 and select up $2.26. Traders may begin the week with caution and uncertainty over boxed beef prices. Weekly exports were nothing to write home about at 12,700 metric tons (mt) but were higher than the previous week. Packers continue to run slower slaughter speeds, attempting to increase margins. However, it does not seem cattle are backing up in the country. The avian flu has been confirmed in a dairy herd in Idaho adding to the states of Texas, Kansas, and Michigan that have confirmed it. It is uncertain what impact this could have, if any, on beef cattle. The Commitment of Traders report showed funds as net sellers of 1,019 futures contracts in live cattle bringing their net-long position to 65,711 contracts. Funds were sellers of 2,637 contracts in feeder cattle bringing their net-long futures positions to 7,985 contracts.