DTN Early Word Livestock Comments 05/04 06:03

DTN Early Word Livestock Comments 05/04 06:03 Cattle Remain Sideways June cattle anticipate lower cash in the near term. However, strong demand and higher boxed beef may make this price look too cheap. Feedlots are hoping for at least steady prices this week. Hogs are certainly showing no bounds as strong demand and tight supplies keep packers aggressive. Consumers show no indication of price resistance. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $219.90 +1.59* Hogs: Higher Futures: Higher Lean Equiv: $118.27 +1.20** * 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: Live cattle futures seem to be leading the charge lower with the fall of the June contract Monday. There was not much for the cattle complex to go on as grain prices were somewhat benign with the exception of the July corn contract. The market is waiting for some cash price direction but will likely need to wait until the middle of the week. This will keep futures in a sideways pattern. There is hope feedlots will hold out for at least steady cash, but traders were not convinced that will happen. Packers will not need to be aggressive as they already have cattle purchased ahead for this week. The positive aspect of the market is demand. Boxed beef was nicely higher Monday, but that money seems to be going into packer's pockets rather than to the beef producer. No bids or offers were listed Monday. The Commitment of Traders reports showed funds as net sellers of 16,424 contracts, bringing their net longs to 54,895 contracts.