DTN Early Word Livestock Comments 05/09 06:05

DTN Early Word Livestock Comments 05/09 06:05 Cash Hog Strength May Support Futures The cattle complex was able to post gains with feeder cattle showing greater strength. Hog tried to move into positive territory but could not find sufficient buying interest to move futures into positive territory. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $225.83 -$0.95* Hogs: Higher Futures: Higher Lean Equiv: $88.93 +0.07** *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: Cattle traders had little to go on and decided to be a bit more aggressive at buying futures due to the overall nature of the market. Cattle supplies are tighter and will remain that way as long as demand maintains the need for beef. There was no indication of the potential for cash this week with only showlists being distributed yesterday. Boxed beef did not provide much support as choice declined $0.63 and select declined $3.04. There is much speculation over cash this week with many believing cash will be no less than steady. However, with packers purchasing 30% of last week's cattle for deferred delivery, it does increase the potential for another week of lower cash.