AFTERNOON MARKET UPDATE; April 6
CLOSING LIVESTOCK COMMENTS
Rick Kment, DTN Livestock Analyst
GENERAL COMMENTS: Moderate early week support has stepped back into the complex early Monday with mixed live cattle trade now showing narrow to moderate gains. Light buyer support is helping to hold strong gains through lean hog futures. Corn prices are lower in light trade. May corn futures are 2 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 159 points higher while Nasdaq is up 34 points.
LIVE CATTLE: Narrow gains are seen through live cattle futures as firming boxed beef values have helped to draw additional interest back into the entire live cattle complex. April futures continue to lead the market higher, while the rest of the complex has replaced narrowly mixed trade with light to moderate gains. Trade in the complex remains sluggish, which could keep prices in a tight range through the rest of the session. Cash cattle markets are quiet with a typical Monday schedule seen as showlist distribution and inventory taking is being seen in all areas of cattle country. The focus on defending the higher cash cattle trade next week could limit trade until the end of the week. Asking prices are undeveloped but expected to be seen around $170 and higher in the South and $271 and higher in the North. Beef cut-outs at midday are higher, $0.87 higher (select) and up $0.55 per cwt (choice) with active movement of 72 total loads reported (46 loads of choice cuts, 10 loads of select cuts, 7 loads of trimmings, 9 load of ground beef).FEEDER CATTLE: Sharp triple-digit gains continue to be seen through the feeder cattle futures market as traders are focusing on the recent cash market support as well as supplies remaining tight over the late-spring and early summer months. May through September contracts continue to hold the most aggressive support as traders continue to narrow the discount to the front month April contract.