DTN Early Word Livestock Comments 05/25 06:29

DTN Early Word Livestock Comments 05/25 06:29 Lower Corn May Support Cattle Live cattle struggled Tuesday with futures only able to close mixed. Feeder cattle took advantage of lower corn futures, posting triple-digit gains with more possible Wednesday. Hog futures took a breather Tuesday, bouncing significantly into the close. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $195.60 -$0.07* Hogs: Higher Futures: Higher Lean Equiv: $115.86 +$1.19** *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 just could not muster sufficient trader interest to push futures to strong gains. Traders are taking a wait-and-see attitude over just how cash will shake out this week. There was some light trade in the South $1.00 lower than last week, but nothing that traders could hang their hats on. Packers are not expected to be aggressive this week, so it will be up to the feedlots as to at what price they will be willing to part with their cattle. The weakness of corn Tuesday and, again, weakness overnight might give feedlots more confidence to hold for steady cash. Boxed beef was mixed with choice down $0.63 and select up $1.12. Feeder cattle may see further gains as overnight corn futures show further weakness. The potential corn export agreement between China and Brazil may reduce export demand and price, making feeding cattle a bit less expensive.