DTN Early Word Livestock Comments 05/19 06:20

DTN Early Word Livestock Comments 05/19 06:20 Mixed Trading Ahead of Report Feeder cattle were on fire Thursday, posting gains of over $3.00 in several contracts. This pulled live cattle higher, even though there was no solid direction of cash so far. Hogs were under pressure for a time with spread trading again evident with August and October feeling the brunt of it. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $220.09 -$0.15* Hogs: Lower Futures: Mixed Lean Equiv: $90.76 +$0.66** *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: The very limited business Thursday in cash cattle was in line with what took place Wednesday with live cattle in the South at $170 and dressed in the North at $280. Nothing solid was established. Feedlots are holding out for at least steady to $1.00 higher. Packers want to improve margins. Boxed beef prices were higher Thursday with choice up $0.16 and select up $0.72. Weekly export sales were up 5% from the previous week with net sales of 17,400 metric tons (mt). Feeder cattle were propelled higher as futures pushed through contract highs, hitting stops, and increasing buying interest. Some of the strength could be from a delayed reaction to the substantial weakness of corn Wednesday. Feeders remain in strong demand at auctions. Traders are looking ahead to the Cattle on Feed report to be released Friday afternoon, which could temper price movement. Estimates are for on-feed numbers May 1 at 96.5%; placements in April at 96.4%; marketings in April at 90.2%.