DTN Early Word Livestock Comments 04/08 06:16

DTN Early Word Livestock Comments 04/08 06:16 Cattle Futures May Bounce Cattle futures were pummeled as the news of the avian flu virus in dairy cattle continued to circulate. Funds continued to liquidate long positions. Hog futures found substantial strength as they were benefiting from the avian flu virus and reacting to strong cash and cutouts for much of the week. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $221.10 -$0.28* Hogs: Steady Futures: Mixed Lean Equiv: $103.72 -$0.40** *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: Even though the avian flu virus has not been found in beef cattle and it is safe to consume the meat from an infected cow, consumers seem to have reacted negatively to the news by curtailing consumption. Boxed beef prices took a hit with choice down $9.55 and select down $8.73 last week. Boxed beef on Friday showed some moderation with choice up $0.02 and select down $1.35. Significant damage has been done both fundamentally and technically. Cattle futures have declined to the lowest level since mid-January. At that time, the market rallied substantially, but there had been no avian flu in cattle at that time. The market may have a difficult time coming back from current levels. Lower cash cattle took place last week, but the decline in futures was more than the decline in cash, which could result in some stability developing this week.