DTN Early Word Livestock Comments 05/16 06:25

DTN Early Word Livestock Comments 05/16 06:25 Uncertainty Over Price Strength The livestock complex closed higher Monday with feeder cattle and hogs showing the most strength. Cattle seemed to continue to ride on the positive estimates of the WASDE report. Hogs pushed higher on cutout strength. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $222.54 -$1.29* Hogs: Higher Futures: Higher Lean Equiv: $91.41 +$0.97** *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 optimism Monday over a greater potential for cash to at least hold the line with last week. This remains to be seen, but traders seemed confident the decline in cash may be near an end. After all, cattle numbers did not suddenly increase. The positive estimates for prices released on the WASDE report on Friday provided some continued support as well as the fact that futures hold a discount to cash. Cash business is not expected Tuesday as bids and offers have not yet been revealed. Boxed beef prices were mixed with choice down $2.63 and select up $0.03. Feeder cattle defied the higher corn prices Monday as demand for cattle at the auctions remains strong.