DTN Early Word Livestock Comments 04/11 06:26

DTN Early Word Livestock Comments 04/11 06:26 Livestock Futures May Find Support The livestock complex fell as Wednesday progressed. The prospects for higher cash cattle trade this week dimmed as futures failed to hold gains and slaughter slowed. Hogs turned tail, closing with triple-digit losses, as cash and cutouts struggled. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $221.79 -$2.68* Hogs: Lower Futures: Mixed Lean Equiv: $106.22 -$0.46** *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: Cattle came under pressure Wednesday, partly from the higher-than-expected increase in the Consumer Price Index (CPI), but mostly from the feeling that cash cattle will trade lower this week. There had been some optimism for at least steady cash; but that seems to have slipped away. Not only is lower cash more of a reality, but boxed beef took a hit Wednesday, pushing choice cuts back below $300 again with a decline of $3.86, settling at $298.23. Select cuts fell $3.88 to $296.02. Slaughter continues to be reduced as packers want to maintain margin in the face of lower boxed beef. The market may be building some support, but it may be difficult to see much upside price potential in the near term. Feeder cattle remain in strong demand as supplies are tight, but feeder cattle futures are following the lead of live cattle. The WASDE report will be released Thursday and will garner some attention from cattle traders.