DTN Early Word Livestock Comments 05/01 06:22

DTN Early Word Livestock Comments 05/01 06:22 Cattle Expected to See Pressure Live cattle held up well on Friday as traders were not sure of the final outcome for cash and the fact that June already had a decrease factored in. Hogs found further support from strong cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $227.97 +$0.02* Hogs: Steady Futures: Higher Lean Equiv: $88.28 +$2.42** *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: There was an indication earlier in the week of lower cash, which was hoped would not develop in the end. However, that was not the case as Northern dressed cattle traded $3 to $5 lower at $283 to $285. Southern live cattle were $2 lower at $173. The market may have turned a corner for the time being as packers have not been willing to pay up for cattle over the past two weeks. Boxed beef prices were mixed Friday with choice up $0.37 and select down $0.75. Boxed beef may be the key to near-term cash as consumer demand will dictate prices. Feeder cattle tried to move higher and retest the highs of the previous week but succumbed to selling pressure in the end influenced by cash cattle trade. The Commitment of Traders report showed funds increasing their long futures by 3,024 contracts, bringing their net-long futures position to 104,454 contracts. They increased their long futures in feeder cattle by 2,480 contracts, bringing their net-long futures position to 12,421 contracts.