DTN Early Word Livestock Comments 05/24 06:20

DTN Early Word Livestock Comments 05/24 06:20 Futures May Consolidate It was finally a day to see positive trade in all livestock markets. Cattle did a classic rebound after a negative Cattle on Feed report. Hogs continued higher, extending last week's strength. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $195.67 +$1.28* Hogs: Steady Futures: Mixed Lean Equiv: $114.67 -$0.06** *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: Cattle rebounded after being oversold into the Cattle on Feed report. The market was overdone to the downside, resulting in the general pattern of moving in the opposite direction of what the report would indicate. Gains were not very impressive as the market continues to deal with the strong potential of lower cash again this week. Sure, futures are holding a discount to cash; but that might be warranted. Showlists are higher this week, which provides packers the ability to bid lower as they certainly are not short bought on cattle. The Cold Storage report showed beef supplies up 18% from a year ago. The Commitment of Traders report showed funds as net sellers of 4,321 contracts, bringing their net-long positions to 25,628 contracts.