DTN Early Word Livestock Comments 05/20 06:31

DTN Early Word Livestock Comments 05/20 06:31 Traders Look for Price Direction One could say the trading action in live cattle and hog futures Wednesday was somewhat like watching paint dry. There was price movement, but not the volatility that we have become accustomed to. Both markets anticipate the weekly Export Sales report to provide some direction. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $235.21 +0.15* Hogs: Steady Futures: Mixed Lean Equiv: $124.71 +1.95** * 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 had a price swing of about $1.50 Wednesday, but closed the day mixed. This did little to incite trader interest in taking a definite position in the market. Maybe the upcoming Cattle on Feed report will keep the market sideways until then. However, comparing the numbers to the previous year will not provide a solid comparison with the exception of total cattle on feed number. Marketings and placements will be very different due to the impact of COVID last year. Cash cattle Wednesday did not provide for any real bullish support with steady to $1.00 higher prices in the South and steady to a $1.00 lower in the North. The move by Argentina to ban exports is expected to bring some international business to the U.S. as they supply 22% of China's beef imports. However, even with that news, the failure of further significant gains Wednesday indicates traders want to see proof of increased exports. Weekly exports will be released Thursday and will have a bearing on price direction.