DTN Early Word Livestock Comments 04/23 06:14
Livestock Follow-through Buying May Continue

The livestock complex showed impressive gains on Tuesday with a new contract
high in the soon-to-expire April live cattle contract. Hog futures pushed
through technical resistance, triggering renewed buying interest.

Robin Schmahl
DTN Contributing Analyst

Cattle: Steady Futures: Higher Live Equiv: $242.94 -$1.05*

Hogs: Higher Futures: Mixed Lean Equiv: $101.55 -$0.61**

*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:

It was an impressive day for cattle, with most contracts closing over $2.00
higher. The April live cattle contract moved to a new contract high at $211.37.
This contract has one week to trade, and traders expect cash to remain strong.
The other live cattle contracts are knocking on the door of new contract highs.
Boxed beef was not supportive on Tuesday, with choice down $1.79 and select
down $1.12, but that may have limited impact on the market today. The strength
of futures will increase the confidence of feedlots to hold for higher cash
this week. The packers did buy some cattle ahead, but it may not have been
enough to leave them in the driver's seat. Feeder cattle are in strong demand,
with sharply higher prices at auctions.