DTN Early Word Livestock Comments 04/23 06:12

DTN Early Word Livestock Comments 04/23 06:12 Follow-Through Price Strength Expected Tuesday Livestock futures were higher across the board Monday with cattle traders reacting to the Cattle on Feed report and hogs moving higher due to strong cash and continued strength of cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $219.54 +$0.30* Hogs: Higher Futures: Higher Lean Equiv: $107.66 +$1.61** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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 gapped higher in the open Monday and never looked back. The bullish implications of the Cattle on Feed report provided the fodder needed for traders to buy aggressively into the market. The concerns about impact on beef demand due to avian flu in dairy cattle were put on the back burner and this is possibly becoming old news. It has not been discovered in beef cattle and it is not a threat to the beef supply. The market seems to be moving back to the fundamentals of tight cattle numbers that likely will be seen throughout this year. The downside to price potential is packers continue to reduce processing speeds in an attempt to back up cattle and improve margins. Boxed beef prices were higher with choice up $0.26 and select up $1.04.