DTN Early Word Livestock Comments 05/20 06:28

DTN Early Word Livestock Comments 05/20 06:28 Mixed Trading Ahead of Report Nearby live cattle contracts closing positive along with deferred hog contracts. Live cattle showed limited price fluctuations. Feeder cattle were under pressure again despite lower corn futures. Hogs saw lower cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $194.69 +$0.61* Hogs: Steady Futures: Mixed Lean Equiv: $110.88 -$0.15** *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: Most of the cash business has been done for the week at $2.00 lower. Traders are somewhat concerned over next week as packers again may not need to be aggressive due to a number of cattle already contracted. The other concern is a rising fear over a recession and the impact it would have on beef demand. Cattle futures may not see much volatility Friday as the Cattle on Feed report will be released after the close. Estimates for the report are for on feed at 101.4%, placements at 96.1% and marketings at 98%. Weekly export sales of 23,300 metric tons (mt) were 18% below the previous week. Boxed beef showed gains with choice up $1.23 and select up $0.04. Feeder cattle continue to struggle with steers and heifers being sold at lower prices. New contract low closes even in the face of weaker corn prices do not bode well for the market.