DTN Early Word Livestock Comments 05/08 06:07

DTN Early Word Livestock Comments 05/08 06:07 Cautious Trade to Begin the Week Live cattle futures were mixed with contracts settling on both sides of unchanged on Friday. Feeder cattle and hogs traded and closed under pressure with hogs falling apart. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $226.78 -$0.02* Hogs: Steady Futures: Higher Lean Equiv: $88.86 +1.78** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equivalent 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 no change in the cash cattle market on Friday with cash trading following the pattern of the week with Northern dressed cattle trading $3.00 lower and Southern live cattle trading $1.00 lower. It will be interesting to see how the cash market will perform this week. The market did not suddenly find more cattle over the past weeks. Packers are strategically working the market to their advantage and have been able to purchase cattle ahead even at lower prices. Slaughter pace has slowed somewhat as packers try to improve margins. Boxed beef was mixed on Friday with choice down $0.33 and select up $0.67. Boxed beef prices seem to be turning more variable recently which may be an indication of slowing demand. The Commitment of Traders report showed funds increased their long futures positions by 1,690 contracts, bringing their net total long positions to 106,144 contracts. There were 1,752 long futures added to feeder cattle bringing their net long futures positions to 14,173 as of May 2.