DTN Early Word Livestock Comments 05/17 06:13

DTN Early Word Livestock Comments 05/17 06:13 Traders Await Cash Direction Live cattle struggled to see a positive close, but traders were complacent and cautious over what cash cattle will do this week. Feeder cattle gained about as much as live cattle lost. Hogs were mixed with spread trading evident; June through August were the recipients of more aggressive buying. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $221.22 -$1.32* Hogs: Higher Futures: Mixed Lean Equiv: $90.78 -$0.63** *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: Traders decided not to second guess what cash cattle were going to trade for this week and play it safe, resulting in futures trading in a narrow range. There is hope cash will trade no worse than steady, but the weakness of boxed beef and the fact that packers purchased 29% of the cattle last week for deferred delivery may put them in the driver's seat. Boxed beef was lower with choice down $2.51 and select down $0.36. It is questionable if cash trade will develop Wednesday or if packers and feedlots will hold out longer. Neither wants to tip their hand early. May feeders posted a lower price while other contracts closed higher. Feeder cattle continue to trade higher at auctions as the potential for lower feed prices and strong beef prices increases buyer interest.