DTN Early Word Livestock Comments 05/11 06:21

DTN Early Word Livestock Comments 05/11 06:21 Selling Pressure May Continue The only positive from the livestock complex Tuesday was May and June hogs closing higher. Hog futures were on a roller coaster as contracts ebbed and flowed much of the day. Cattle made an initial attempt to move higher early but fell back as cash traded and corn strengthened. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $191.00 -$1.67* Hogs: Steady Futures: Mixed Lean Equiv: $107.64 -$4.20** *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 opened higher Tuesday but spent limited time in positive territory. Market forces were at work tugging on its short tails. Some cash trade surfaced Tuesday that did not point to solid gains for futures. Cattle in the South traded steady with last week whole Northern cattle traded 50 cents lower. Early trading with the inability of cash to move higher does not bode well for the week. Packers are in control with some of the cattle being added to already booked supplies for later this month. The earlier concern over the potential for increased supply and lower prices in May is coming to fruition. Of course, the state of the economy does not help matters impacting demand. Boxed beef prices were mixed again with choice up $3.85 and select down $1.93. Higher corn futures overnight may continue to keep pressure on feeder cattle.