DTN Early Word Livestock Comments 05/21 06:43

DTN Early Word Livestock Comments 05/21 06:43 USDA Makes Huge Beef Export Reporting Error Live cattle will be dealing with a large reporting error Thursday on the weekly Export Sales report that could send futures lower. However, the Cattle on Feed report will be released Friday, but the difficulties of comparison to the previous year may not influence the market much. Hogs futures are expected to follow through on the strength of Thursday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $236.05 +0.84* Hogs: Steady Futures: Mixed Lean Equiv: $125.92 +1.21** * 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: USDA's Foreign Agricultural Service released a correction to the weekly export sales report for beef. There were only 34 metric tons (mt) of beef sold to the Netherlands rather than the 33,700 mt that were reported. A correction will be made on the export sales report next week. This makes a huge difference. Rather than the reported export sales of 56,900, export sales for the week were 23,234 mt. This may have a large impact on cattle futures. Futures did not respond to the marketing-year high sales number Thursday, but this may have a greater impact. Traders also will have the Cattle on Feed report to ponder as the day progresses. The report will be somewhat difficult to decipher as it will be compared to last year. Placements and marketings will be distorted due to the disruptions of COVID-19 last year. Total cattle on feed might be the only number that some sense could be made of, but still not an accurate representation. The trade estimates total cattle on feed up 3.7%, placements up 20.7% and marketings up 33%. Boxed beef continued higher Thursday with select cuts breaking above $300 level only the second time in history.